Common Motors cuts 500 staff

Mary Barra, CEO, GM on the NYSE, November 17, 2022.

Source: New York SE

DETROIT- General Motors is shedding hundreds of white-collar jobs, as it follows other large companies, including competitors, in downsizing to conserve cash and increase profits.

According to a person familiar with the plans, which was announced internally on Tuesday, the cuts will affect about 500 jobs. They will serve in various capacities at the company, said the person, who asked not to be named because the plans are not public.

The timing of the cuts, first reported by The Detroit News, is odd. They come about a month after GM CEO Mary Barra and CFO Paul Jacobson told investors the company was not planning any layoffs.

In a letter seen by CNBC Tuesday, Arden Hoffman, GM’s chief people officer, confirmed the company’s goal of $2 billion in cost savings over the next two years, which “we will achieve by reducing corporate spend, overhead and complexity across all of our products.” will reach. “

The letter described that the cuts, which follow performance reviews, would affect a “small number of global executives and classified employees after our most recent performance calibration.” The cuts began Tuesday and will continue depending on location.

The company reiterated the cuts as a result of the performance in an emailed statement, saying the cuts help “manage the attrition curve as part of our overall effort to reduce structural costs.”

At the end of last year, GM employed around 86,000 hourly workers and 81,000 white-collar workers worldwide. The 500 job cuts account for less than 1% of GM’s employees.

Jacobson told investors last month that the company expects to reduce headcount through turnover rather than layoffs.

Until recently, the auto industry has been largely unaffected by the job cuts that have plagued the tech sector in recent quarters.

Ford engine Earlier this month, the company confirmed it would cut 3,800 jobs in Europe over the next three years to adopt a “leaner” structure as it focuses on electric vehicle production. Others such as Rivian Automotive also made paid cuts while Stellar said it would shut down a facility in Illinois.

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