GM cutting hundreds of jobs to reduce costs
In a letter, GM's Arden Hoffman said the automaker is committed to $2 billion in cost savings in next two years
General Motors is making moves to cut costs and streamline operations.
The plan means cutting hundreds of executive-level and salaried jobs, a person briefed on the matter told Reuters on Tuesday.
The global reductions are in the "low hundreds," the person said.
The company is committed to $2 billion in cost savings in the next two years, according to a letter to employees from GM Chief People Officer Arden Hoffman.
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Mary Barra, CEO of General Motors (REUTERS/Brendan McDermid / Reuters Photos)
The automaker said in January it did not plan layoffs and on Tuesday did not characterize the cuts as layoffs.
GM said the job action Tuesday "follows our most recent performance calibration and supports managing the attrition curve as part of our overall structural costs reduction effort."
GM shares closed down 1.5% and slipped slightly in extended trading.
The new GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan (REUTERS/Rebecca Cook / Reuters Photos)
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The industry has been adjusting headcount with Ford announcing last month it was cutting one in nine jobs in Europe, axing 3,800 roles in product development and administration as part of a drive to lower costs.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 55.49 | +0.70 | +1.29% |
Stellantis and unions on Monday signed an agreement to cut up to 2,000 workers from the carmaker's Italian operations this year through voluntary redundancies.
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On Tuesday, Stellantis indefinitely idled a plant in Illinois that employs about 1,350 workers.
Reuters contributed to this report.