General Motors announces global layoffs amid electric vehicle shift
The American automotive company General Motors (GM) has announced plans to lay off around a thousand employees worldwide, primarily in office positions. The company faces challenges related to the transition towards electric vehicles and increasing competition in the global automotive market.
5:56 PM EST, November 15, 2024
According to the latest report from the Associated Press, the decision to lay off employees was announced on Friday. Representatives of General Motors explain that the company needs to "optimize operations for speed and excellence." In an official statement, the corporation emphasizes the necessity of increasing operational efficiency and focusing on key priorities.
The Associated Press notes that, like other car manufacturers, GM faces the complex task of navigating the shift to electric mobility. The company needs to continue developing and refining combustion engine models while investing heavily in battery and assembly facilities, securing raw materials, and preparing components for the upcoming wave of electric vehicles.
Cost cutting a priority
The Associated Press reminds us that General Motors employs about 150,000 workers worldwide. Most employees work at the technical center in Warren, in the suburbs of Detroit. At the end of last year, the company employed 76,000 office workers.
According to the agency, CFO Paul Jacobson confirmed last month that the company is on track to achieve its goal of reducing fixed costs by $2 billion by the end of this year. In April of last year, about 5,000 General Motors office employees took advantage of the voluntary departure program.
Challenges of the energy transition
The Associated Press highlights that GM and other automakers are challenged with handling the shift to electric mobility. The company needs to continue developing and enhancing combustion engine models while dedicating resources to battery and assembly facilities and securing raw materials and components for the future generation of electric vehicles.
According to the agency's data, the share of electric vehicles in new vehicle sales in the US this year increased to 7.9%, compared to 7.6% last year. General Motors does not rule out further workforce changes in the future, although currently, as AP reports, "layoffs are not being considered."
