General Motors is set to lay off hundreds of salaried employees within its information technology division as part of efforts to reduce costs and reshape its workforce.

The automaker also plans to recruit workers with expertise in other emerging technology fields to better align with its future needs.

The job cuts will affect roughly 500 to 600 employees, according Bloomberg, citing people familiar with the matter.

The individuals who pleaded anonymity as they were not authorized to discuss the private matter said the management began informing affected staff on Monday morning.

General Motors said the that the decision is part of a broader effort to transform its information technology division and better position the company for the future.

Following the announcement, the automaker’s shares dropped 3.9 per cent by 12:27 p.m. in New York on Monday.

The job cuts will impact GM offices globally as the automaker seeks to strengthen earnings, even as U.S. sales have remained sluggish at the start of the year.

In October, GM also reduced hundreds of salaried positions, following earlier layoffs of thousands of hourly workers after its heavy investments in electric vehicles underperformed expectations.