General Motors (GM, Financial) is implementing a global workforce reduction of nearly 1,000 employees, primarily affecting its U.S. operations. The company aims to streamline its operations to enhance competitiveness in the automotive market. While GM has confirmed the layoffs, it has not disclosed specific numbers. The company emphasized its commitment to optimizing speed and achieving excellence as part of its ongoing efforts.
GM is actively repositioning itself as a leader in the electric vehicle (EV) and software sectors, both of which require significant investment. As part of its strategy, GM plans to reduce losses in its EV business by $2 billion to $4 billion in the coming year. According to a state government document, the layoffs include 507 employees at the Warren Technical Center in Michigan.
Earlier this year, GM streamlined its operations by cutting over 1,000 employees from its software division in August and laying off approximately 1,700 workers at a manufacturing plant in Kansas in September. Additionally, around 5,000 salaried employees accepted buyout agreements to leave the company in 2023.
The move comes as automakers globally, including those in Detroit, intensify cost-cutting measures to make EVs profitable to compete with Tesla and strong Chinese automotive companies. Other industry players, such as Stellantis, Ford, Nissan, and Volkswagen Group, have also made significant workforce reductions or issued warnings of potential large-scale layoffs.
