On Friday, November 15, General Motors announced a reduction of approximately 1,000 salaried employees and hourly workers in order to achieve better operational efficiency. This layoff, reported by Reuters, is global in scope but primarily affects employees in the United States. General Motors confirmed in a statement that the company has implemented these job cuts.
The Detroit-based automaker stated, “In order to succeed in this competitive market, we need to optimize speed and excellence.” The statement further mentioned, “As part of this ongoing effort, we have conducted a small number of team reductions.”
General Motors has been striving to reposition itself as a leader in the electric vehicle and software sectors, both of which entail high costs. The automaker aims to reduce losses in the electric vehicle segment by $2-4 billion next year.
According to a state government document, among the employees impacted by this layoff, 507 individuals are from General Motors’ technical center in Warren, Michigan.
In August of this year, General Motors laid off over 1,000 employees in the software division as part of efforts to streamline the team. In September, around 1,700 individuals were also laid off at a manufacturing plant in Kansas by General Motors.
As per General Motors’ 2024 annual report, as of December 31 of the previous year, the company had approximately 163,000 employees worldwide.
Automobile manufacturers have been undergoing layoffs globally as part of widespread cost-cutting initiatives. In addition to General Motors, companies like Volkswagen, Ford, and others are facing various pressures, including uncertain economic and trade outlooks, competition from Chinese automakers, and investment pressures. These companies need to invest billions of dollars to transition to electric vehicle production.
An employee who has worked at General Motors for decades told the Detroit Free Press that on Friday, they received an email that began with, “We are faced with the difficult decision to say goodbye to some of our colleagues.” The email referenced business simplification issues but did not specify the exact reasons for the dismissals.