Automaker Giant General Motors Sacks 500 Employees: Report

Another big name has joined the bandwagon as General Motors is to hand over about 500 pink slips and cut hundreds of jobs this season.

General Motors 2023: One of the biggest tech automaker giants, General Motors (GM) is to layoff around 500 employees from its workforce joining other major companies, including competitors, in downsizing headcounts to preserve cash and boost profits. Announced internally on Tuesday, the cuts affected about 500 positions across the company’s various functions, reports CNBC, citing sources.

Reportedly, this move comes contrariwise a month after GM CEO Mary Barra and CFO Paul Jacobson told investors that the company was not planning any layoffs.

GM Chief People Officer Arden Hoffman confirmed the company’s goal of $2 billion in cost savings over the next two years in a letter sent on Tuesday, which “we’ll find by reducing corporate expenses, overhead, and complexity in all our products”, said the report.

Who will be laidoff?

In an emailed statement, the company reiterated that the cuts were a result of performance, saying that they help with “managing the attrition curve as part of our overall structural cost reduction effort”, the report added.

The letter said the cuts, which follow performance evaluations, would impact a “small number of global executives and classified employees following our most recent performance calibration.” The cuts started Tuesday and will continue based on location, reported CNBC.

Meanwhile, US automaker Ford Motors has announced it will eliminate 3,800 jobs over the next three years in Europe to restructure its business, creating a leaner, more competitive cost structure. By 2025, Ford plans to resize its European engineering footprint, resulting in 2,800 fewer jobs.