Following a period of years when automakers couldn’t build enough vehicles to meet demand – due to supply chain constraints and other pandemic-related issues – inventory has begun to swell to uncomfortably high levels, while incentive spending has retuned in a big way. At the same time, the growth in demand for all-electric vehicles hasn’t quite matched expected levels, which means that several automakers are executing cost-cutting measures as a way to compensate amid rising materials and labor costs. This includes, of course, job cuts, and now Ford’s cross-town rival, General Motors (GM) is set to slash even more positions.
According to GM Authority, the automaker just announced that it has eliminated roughly 1,000 positions, most of them salaried jobs, as well as workers at the GM Global Technical Center in Warren, Michigan, where the Cadillac Celestiq is built. Most of these job cuts occurred in the U.S. between that facility and others, but some were apparently global positions as well. “In order to win in this competitive market, we need to optimize for speed and excellence,” GM said in a statement, adding, “as part of this continuous effort, we’ve made a small number of team reductions. In the normal course of business, to make sure you have people in the right places and doing the right thing.”
As Ford Authority reported back in August, GM announced that it planned on laying off around 1,000 workers in the U.S., with most of them coming from the aforementioned Technical Center in 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. Around that same time, GM also eliminated some research and development positions in China, too.
GM certainly isn’t the only automaker eliminating jobs these days, as Nissan just announced it was laying off 9,000 global workers after posting disappointing H1 2024 financials. Ford is mulling a number of job cuts across its European operations too, including eliminating up to 1,000 positions at the Valencia Assembly plant in Spain.
Comments
Not only did they do this by e-mail, but they told affected employees to request personal belongings by e-mail and someone would deliver them. Translation: don’t step foot on our premises ever again. Beyond DISGUSTING. Mary should have received one of those e-mails.
Incentives are back in a big way? What planet are you on? Seems like all manufacturers are colluding.