General Motors cuts 500 salaried employees

  • General Motors is cutting hundreds of salaried positions as it follows other major companies, including competitors, in cutting staff numbers to preserve cash and increase profits.
  • The cuts affected about 500 positions, according to a source familiar with the plans announced internally on Tuesday.

Mary Barra, CEO, GM at NYSE, November 17, 2022.

Source: NYSE

DETROIT — General Motors is cutting hundreds of payroll jobs as it follows other major companies, including rivals, in cutting staff to preserve cash and boost profits.

The cuts affected about 500 positions, according to a source familiar with the plans announced internally on Tuesday. They will be across different functions of the company, said the person, who asked not to be named because the plans are not public.

The timing of the cuts that were first reported By Detroit News, Strange. They came about a month after GM CEO Mary Barra and CFO Paul Jacobson told investors that the company wasn’t planning any layoffs.

In a Tuesday message seen by CNBC, GM Chief Human Resources Officer Arden Hoffman reiterated the company’s goal of $2 billion in cost savings over the next two years, which “we’ll find by reducing the company’s expenses, overheads, and complexity across the board.” our products.”

The letter described the cuts, which follow performance appraisals, that will affect “a small number of global executives and rated employees who follow our latest performance calibration.” The sale started on Tuesday and will continue based on location.

The company reiterated that the cuts were a result of performance in an emailed statement, saying the cuts help “manage the attrition curve as part of our overall efforts to reduce structural costs.”

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At the end of last year, General Motors employed about 86,000 hourly workers and 81,000 salaried employees worldwide. The 500 jobs cut make up less than 1% of GM’s salaried workforce.

This is breaking news. Check back for more updates.

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