Washington, February 28 General Motors (GM) will cut 500 jobs per month after its leaders assured that there would be no layoffs in the company and despite a gain of nearly 10,000 million dollars in 2022.
The Detroit News newspaper specifies that the layoffs were communicated internally in a letter on Tuesday and that they will concern employees (from the administrative staff to engineers, salespeople and other types of professionals) and not employees of assembly plants.
GM told the newspaper that the layoffs were part of the company’s cost-cutting strategy.
The automaker has some 86,000 employees and some 81,000 factory workers worldwide.
In late January, as GM reported net income of $9.934 million in 2022, its chief financial officer, Paul Jacobson, said the company would cut costs by about $2 billion over the next two years.
But Jacobson added that GM was not planning any layoffs. The company’s CEO, Mary Barra, also assured that GM would not resort to job cuts and would limit itself to reducing the hiring of new employees.
CNBC noted that in the letter reporting the layoff of 500 employees, GM Chief People Officer Arden Hoffman said the $2 billion reduction would come from cutting “business expenses, general and the complexity” of their products.
Hoffman insisted that fired personnel be decided through performance reviews.
On February 14, Ford announced the cut of 3,800 jobs in Europe, or 11% of its workforce in the region, after losing $2,152 million in 2022. EFE
jcr/jdg/jrh