- General Motors is laying off approximately 1,000 workers worldwide, primarily white-collar employees, as part of cost-cutting efforts.
- GM aims to reduce $2 billion in fixed costs by the end of 2024 while transitioning to electric vehicle production.
General Motors (GM) has announced the layoff of approximately 1,000 workers worldwide, primarily in white-collar positions, as part of its ongoing efforts to reduce costs and remain competitive in the global automotive market. The employees affected were informed of the decision early Friday.
In a statement, GM confirmed the layoffs but provided limited details.
“We need to optimize for speed and excellence,” the statement said. "This includes operating with efficiency, ensuring we have the right team structure and focusing on our top priorities."
The move comes as GM and other automakers navigate a challenging transition to electric vehicles (EVs). Companies are balancing investments in EV technology, including battery and assembly plants, minerals, and other components while maintaining and upgrading gas-powered vehicle models.
Despite challenges, the EV market continues to grow. Data from Motorintelligence.com shows U.S. EV sales rose 7.2% through September, reaching approximately 936,000 units. While growth is slower than last year’s 47% increase, EV sales in 2024 are expected to surpass the 2023 record of 1.19 million. EVs currently account for 7.9% of new vehicle sales, up slightly from 7.6% in 2023.
GM, which employs about 150,000 people globally, has a significant white-collar workforce of 76,000 as of last year. This latest round of layoffs aligns with the company’s plan to reduce $2 billion in fixed costs by the end of 2024.
In April, GM avoided layoffs by offering buyouts to about 5,000 white-collar employees with at least five years of service. However, the company cautioned then that future layoffs could not be ruled out.
Edited by Harshajit Sarmah
