General Motors (GM) is implementing workforce reductions, affecting nearly 1,000 employees, worldwide, primarily in the US, to streamline operations, reported Reuters, citing a source.
This move is reportedly part of GM’s strategy to optimise operations and address financial challenges associated with its electric vehicle (EV) segment.
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The company, which has been working to establish itself as a leader in electric vehicles and software, is aiming to reduce losses in its EV division by $2bn to $4bn next year.
The Detroit automaker said: “In order to win in this competitive market, we need to optimise for speed and excellence.
“As part of this continuous effort, we’ve made a small number of team reductions”.
The job cuts could include around 500 employees at GM’s tech centre in Warren, Michigan, as per a state filing.
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By GlobalDataIn recent months, GM has undertaken several workforce adjustments, including laying off more than 1,000 workers in its software department in August and about 1,700 employees at a Kansas manufacturing plant in September.
Earlier in 2023, approximately 5,000 salaried workers accepted buyouts to leave the company.
Cost-cutting measures are becoming more prevalent among Detroit’s carmakers and the global automotive industry.
Companies are striving to produce EVs profitably while competing with Tesla and Chinese automakers.
Stellantis has also laid off thousands of salaried and hourly workers this year, including around 2,450 employees at a Michigan plant in August and 1,100 workers at an Ohio plant earlier this month.
Ford Motor is experiencing challenges at its F-150 Lightning electric pickup plant in Michigan, which will remain idle through the year-end due to weaker-than-expected demand for the EV.
Other global automakers, such as Nissan and Volkswagen, have also signalled potential significant layoffs in response to industry pressures.
