General Motors cuts 1,000 jobs as it restructures, cuts costs | Wilnesh News

Detroit – General Motors The automaker laid off about 1,000 employees on Friday as it tries to cut costs and adjust priorities amid changing market conditions, according to a person familiar with the matter.

The layoffs announced to affected employees on Friday morning span the industry. Some of these are due to poor performance, while others are part of a review of the automaker’s restructuring priorities, the person said, speaking on condition of anonymity.

Most of the affected employees are based at the automaker’s global technology center in Warren, Miss., a suburb of Detroit, the person said. The layoffs also include a small number of hourly workers.

The company aims to cut $2 billion in fixed costs this year as it grapples with slowing U.S. sales, deteriorating business in China and a “comprehensive” strategic shift in electric vehicle adoption by consumers that is slower than expected.

A GM spokesman confirmed the layoffs but declined to disclose the total.

“To win in this competitive market, we need to optimize for speed and excellence,” GM spokesman Kevin Kelly said in an emailed statement. “This includes operating efficiently, ensuring we have the right team structure, and focus. As part of our ongoing efforts, we are making a small number of team layoffs and we are grateful to those who have helped build a strong foundation for GM’s leadership in the industry.

Friday’s layoffs follow the layoffs of more than 1,000 salaried employees in GM’s software and services divisions in August.

As of the end of last year, GM had 76,000 salaried employees worldwide. That includes about 53,000 U.S. salaried employees.

The United Auto Workers union, which represents hourly workers at the automaker, did not immediately respond for comment.