General Motors fires hundreds of employees, plans $2bn cost reduction

Oluwanifemi Ojo
Oluwanifemi Ojo
General Motors (GM)

One of the world’s leading automakers, General Motors is cutting  hundreds of executive-level and salaried jobs as plans to reduce costs and streamline operations.


Reuters reported that this was provided by a person briefed on the company’s job cut on Tuesday.


According to this person, global reductions are in the “low hundreds.”


The Chief People Officer of GM,  Arden Hoffman said in a letter to employees on Tuesday that the company is “committed to $2 billion in cost savings in the next two years, which we’ll find by reducing corporate expenses, overhead, and complexity in all our products.”


The publication recalls that the automaker disclosed its plans to reduce cost by $2 billion in January.


Meanwhile, GM stated in January that it had no plans to lay off staff. It however did not categorise the job cuts as layoffs off, Reuters reported.


According to the multinational automaker, the cut was in line with its plans to reduce overall structural costs.


The job cut “follows our most recent performance calibration and supports managing the attrition curve as part of our overall structural costs reduction effort ,” GM said on Tuesday.


Hoffman stated, “in an environment where our competitors’ margins are improving, it’s imperative that we act now and focus on our own efficiency.”

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