The GM logo is seen on the facade of General Motors headquarters in Detroit on March 16, 2021.
Rebecca Cook | Reuters
Detroit – General Motors About 1,000 employees were laid off on Friday as the automaker tries to cut costs and realign priorities amid changing market conditions, according to a person familiar with the decision.
The layoffs, which were announced Friday morning for those affected, were across the business. Some were due to poor performance, while others were part of a review by the automaker to realign priorities, according to the person who spoke about the decision on condition of anonymity.
Most of the affected employees were salaried workers at the automaker’s global technical center in Warren, Michigan, in suburban Detroit, the person said. The United Auto Workers said about 50 union members were included in the layoffs.
The company is targeting a $2 billion reduction in fixed costs this year as it deals with slowing U.S. sales, a slump in business in China and a shift to its “all-in” strategy for electric vehicles in which consumers Slower than expected.
GM, Ford and Stellantis stock.
A GM spokeswoman confirmed the layoffs but declined to divulge the total amount.
“To win in this competitive market, we need to improve speed and excellence,” GM spokesman Kevin Kelly said in an emailed statement. “This includes working with efficiency, ensuring we have the right team structure, and focusing on our top priorities as a business. As part of this ongoing effort, we We are grateful to the people who have helped build a strong foundation that will position GM to lead the industry moving forward.”
UAW Vice President Mike Booth, who oversees the union’s GM unit, condemned the layoffs. “GM is seeking to cut approximately 50 UAW jobs, at a time when they are making record profits. We will fight for our terminated members with the full strength of our contract,” he said in an emailed statement.
Friday’s layoffs follow the layoff in August of more than 1,000 salaried employees working in GM’s software and services organization.
GM’s global salaried workforce was 76,000 at the end of last year. This included approximately 53,000 US salaried employees.
