General Motors (GM), according to a CNBC article, laid off about 1,000 workers on Friday. This was part of a broader initiative to cut costs and realign priorities to respond to changing market conditions.
The affected employees were informed of the layoffs on Friday morning. They are spread out across different departments.
Source, who spoke anonymously, said that some were linked to poor performance, and others were part a restructuring project to streamline operations.
The majority of those affected were based in Warren, Michigan (in the Detroit suburbs). The layoffs also affected a small number of workers who were paid by the hour.
As a result of slowing US sales, declining Chinese business, and slower than expected consumer adoption, the company is looking to reduce its fixed costs by $2 billion this year.
The spokesperson for GM confirmed that layoffs had taken place but refused to disclose how many employees were affected.
Kevin Kelly, GM’s spokesperson said in a press release that “in order to stay competitive we must optimize speed and excellence.”
This requires that we operate efficiently, ensure the correct team structure and focus on our business’s top priorities. In order to continue this effort, a few members of our team have been reduced. “We’re grateful for those who contributed to building a solid foundation and positioning GM as a leader in the automotive industry moving forward.”
These layoffs are similar to those made in August when GM laid off over 1,000 salaried workers in its software and service division.
By the year 2023, GM will employ 76,000 salaried employees worldwide, with 53,000 of them in the US.
United Auto Workers, the union that represents GM hourly employees, has not commented on these layoffs.
As new information becomes available, this post GM laysoff 1,000 employees in cost-cutting effort and realignment may change.
