General Motors Co. is set to cut around 1,000 salaried jobs globally as part of a strategy to streamline operations.
The majority of the layoffs will impact North American staff, according to sources who spoke on the condition of anonymity.
This marks the third time in 2024 that GM has reduced its salaried workforce, following cuts to 1,000 software engineers in August and a reduction of its staff in China due to ongoing market challenges, according to Bloomberg.
Under CEO Mary Barra’s leadership, General Motors has consistently cut jobs as part of its strategy to control costs, even as the company’s earnings have remained strong.
These layoffs have allowed GM to reallocate resources and create space for new employees with specialized skills needed to support the company’s shift toward electric vehicles and advanced software development.
“In order to win in this competitive market, we need to optimize for speed and excellence,” GM spokesman, Kevin Kelly said. “This includes operating with efficiency, ensuring we have the right team structure, and focusing on our top priorities as a business.”
As of the end of 2023, General Motors employed approximately 76,000 salaried workers globally, according to a regulatory filing.
The company’s shares saw a boost last month after it raised its 2024 forecast for adjusted earnings before interest and taxes to at least $14 billion, up from its previous estimate of $13 billion.
However, GM’s stock showed little movement in premarket trading on Friday.
