The automotive world is facing a handful of problems at the moment following years of production and supply chain disruptions stemming from the COVID-19 pandemic. Now that production is back in full swing, inventory levels have swollen to new heights, and though sales remain fairly strong, there are many other macroeconomic and political uncertainties to consider. As such, many automakers have initiated layoffs in certain parts of their operations, and that once again includes Ford’s cross-town rival, General Motors (GM).
According to GM Authority, the automaker just laid off dozens of workers that were identified as “underperforming” following the company’s recently-updated annual performance evaluation system. More job cuts are expected to happen between now and the end of February as well, with those cuts coming from the bottom five percent of performers within the company. Those that fall within that category are not only facing termination, but also, aren’t eligible to apply for jobs at GM in the future, either, and don’t receive any sort of bonus.
Last November, GM laid off around 1,000 workers – most of them salaried jobs, as well as impacting 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 consisted of global positions as well. GM recently took a $5 billion dollar hit on its Chinese operations, and opted to end its robotaxi development, instead choosing to focus its efforts on autonomous technology for personal vehicles rather than commercial-focused ones.
GM isn’t alone in facing these types of struggles, as Ford is currently dealing with slow passenger vehicle and EV sales in Europe. That prompted the automaker to announce that it will trim 4,000 positions in that region – most of which come from the UK and Germany – between now and 2027.
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