GM plans to cut 1,000 salaried workers in bid to reduce costs, most of them in North America

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General Motors Co. will cut about 1,000 salaried workers globally in a move to streamline its operations, according to people familiar with the matter.

Most of the layoffs will affect staff in North America, said the people, who asked to not be identified because they weren’t authorized to speak publicly. The cuts mark the third time this year that GM has shrunk its salaried ranks. The automaker trimmed about 1,000 software engineers in August and reduced its China workforce amid ongoing losses in that market.

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Under chief executive Mary Barra, GM has cut jobs on a regular basis to control costs even as the automaker’s earnings have been consistently strong. The cuts have also helped GM make room for new workers with skills needed to develop electric vehicles and more advanced software.

“In order to win in this competitive market, we need to optimize for speed and excellence,” GM spokesman Kevin Kelly said in an email. “This includes operating with efficiency, ensuring we have the right team structure, and focusing on our top priorities as a business.”

GM employed about 76,000 salaried workers globally as of the end of 2023, according to a regulatory filing.

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The company’s shares jumped last month when it raised its 2024 forecast for adjusted earnings before interest and taxes to at least US$14 billion, up from the minimum of US$13 billion it has previously expected.

GM shares were little changed in premarket trading on Friday.

Bloomberg.com

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