Nov 15 (Reuters) – General Motors (GM.N), opens new tab is laying off nearly 1,000 workers worldwide, mostly in the U.S., as it looks to streamline operations, a source told Reuters on Friday.
GM confirmed in a statement it had made job cuts but did not specify a number.
“In order to win in this competitive market, we need to optimize for speed and excellence,” the Detroit automaker said. “As part of this continuous effort, we’ve made a small number of team reductions.”
GM has been seeking to reposition itself as a leader in electric vehicles and software, which are both costly. The automaker is aiming to cut $2 billion to $4 billion in losses on electric vehicles next year.
According to a state filing, the reductions include 507 employees at GM’s tech center in Warren, Michigan.
In August, GM laid off more than 1,000 workers in its software department as it worked to streamline the team. GM also laid off about 1,700 workers at a Kansas manufacturing plant in September.
One of its most significant reductions was in 2023, when about 5,000 GM salaried workers took buyouts to leave.
Cost-cutting efforts have intensified across Detroit’s carmakers and the global industry as companies race to make EVs profitably and compete with Tesla (TSLA.O), opens new tab and China’s powerful auto companies.
Stellantis (STLAM.MI), opens new tab laid off thousands of salaried and hourly workers this year, including about 2,450 workers at a Michigan plant in August and 1,100 workers at an Ohio plant earlier this month.
Ford Motor (F.N), opens new tab cut shifts at its F-150 Lightning electric pickup plant in Michigan, which will be idled through year-end as the company grapples with weaker-than-expected demand for the EV.
Global automakers including Nissan (7201.T), opens new tab and Volkswagen (VOWG_p.DE), opens new tab have also warned of significant layoffs.
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REUTERS
Saturday, November 16, 2024
