As part of an attempt to streamline the operations of its software and services unit, General Motors is laying off over one thousand employees, globally. This means, the 76,000-strong workforce of GM will be trimmed by about 1.3 per cent.
The impacted employees include 600 from the American multinational automotive manufacturing company’s tech campus near Detroit. The company has about 53,000 employees working out of the US.
The company has been looking at simplification to ensure better speed and prioritisation of impactful investments.
Globally, auto makers are trying to cut costs fearing a slowdown of the industry. Additionally, more companies are shifting focus towards electric vehicles.
Recently, there were media reports that General Motors had started trimming its workforce in China, as it is said to be looking at a major restructuring of operations in the country. The company apparently recorded losses to the tune of $104 million in the second quarter, which may have been a surprise since executives were hoping to be profitable in the country. Only recently, the company had reiterated its commitment to remaining “profitable and self-sustainable” in China.
It has been quite challenging for auto manufacturers to make profits in China, as local auto makers are offering a wide range of new models with the latest features, at lower prices.
The situation has forced GM to restructure in consultation with its Chinese joint-venture partner and to cut costs.
