General Motors follows Job Cut Trend, Cuts Hundreds of Jobs to Save Cost
General Motors Chair and CEO Mary Barra had declared that the company did not have plans for layoffs, stating that they were only hiring for strategically important positions and utilizing attrition to manage headcount. Despite this, General Motors follows Job job-cut trend, kicking out hundreds of salaried workers.
General Motors follows Job Cut Trend, Cuts Hundreds of Jobs to Save Cost
As a survival challenge in the era of global economic slowdown, changing market conditions, and surge of recession fear, now General Motors follows job cut trend, like many companies have laid off thousands of employees so far, especially in tech companies.
Tech companies implemented layoffs as a strategy for reducing costs and restructuring their businesses to stay competitive. The job-cutting trend has now spread to the auto industry. As a result, in the auto industry, General Motors follows the job-cut trend, and has announced the elimination of hundreds of positions to save money.
General Motors stated in a statement that the company is making some performance-related job cuts among its salaried employees and executives across the organization. The job cut is expected to affect a small faction of the company’s workforce.
With this announcement, General Motors, becomes the latest auto brand to fire its workforce, with the announcement of layoffs at General Motors affecting hundreds of employees jobs.
Like many other businesses, GM has been affected by supply chain disruptions and shifting consumer demand patterns, which have impacted its revenue and profitability.
To address these challenges, General Motors has taken a number of steps to cut costs, including reducing its workforce based on performance among its salaried employees and executives. But the company does not declare the actual numbers of job cuts that will be affected by this layoff.
As, per the CNBC report, over 500 employees are expected to be affected by General Motors’ job cuts. The Detroit automaker currently employs approximately 81,000 employees worldwide. In an internal memo, Chief People Officer Arden Hoffman notified employees of the cuts and noted that impacted workers have already begun to leave the company.
Despite General Motors Chair and CEO, Mary Barra’s confirmation a month ago that the company would not be implementing any job cuts in the near future, a notable reduction in the workforce has now occurred. During an earnings call, Barra announced plans to reduce costs and save $2 billion over the next two years by reducing complexity in all four products and cutting corporate overhead expenses. However, Barra had also previously assured that the company had no plans for layoffs.
A month ago, Mary Barra stated that the areas we’re focusing on are continuing to reduce complexity in all of our products and reducing corporate overhead expenses across the board. “I do want to be clear, though.” “We’re not planning layoffs.” “We are limiting our hiring to only the most strategically important roles and will use attrition to help manage overall headcount.”
According to an email from the company, the recent job cuts were made due to poor performance and will aid in cost-cutting efforts.
Additionally, a competitor of GM, Ford Motors, has announced plans to eliminate 3,800 positions in Europe over the next three years as part of its restructuring program aimed at improving its cost structure.
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