Layoffs are a common thing in the corporate world, and the automotive realm is no exception. This is particularly true as the auto industry continues to undergo massive changes following a big shift in consumer demand as it pertains to all-electric vehicles, and more recently, growing inventory, economic uncertainties, and global macroeconomic pressures. Now, fresh off its decision to trim jobs in China, Ford’s crosstown rival, General Motors (GM) has announced that it will lay off some workers in the U.S., too.
According to GM Authority, the automaker plans on laying off around 1,000 salaried workers in its software and service departments, with many of them coming from GM’s Global Technical Center in Warren, Michigan. GM is looking to continue to reduce its operating costs with this move, which comes around a year after the company closed its information technology office in Arizona, resulting in 900 job cuts. The workers that are impacted by this latest round of layoffs will be offered severance pay based on their length of service, however.
“As we build GM’s future, we must simplify for speed and excellence, make bold choices, and prioritize the investments that will have the greatest impact,” GM said in a statement. “As a result, we’re reducing certain teams within the Software and Services organization. We are grateful to those who helped establish a strong foundation that positions GM to lead moving forward.”
Ford just completed several rounds of layoffs a little over a year ago as it also worked to trim the proverbial fat from its operations, and earlier this month, Stellantis began offering a voluntary separation program to some of its salaried U.S. workforce from the vice president level down amid sinking profits in the U.S. As for GM, it remained committed to its electrification plans even as others – such as Ford – dialed them back, though it did wind up caving and trimming its forecasted EV production this past June.
We’ll have more on everything Ford’s competition is up to soon, so be sure and subscribe to Ford Authority for ongoing Ford news coverage.
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