General Motors fires 1,000 employees in cost-cutting move amid market shifts

General Motors (GM) has laid off approximately 1,000 employees, as the company seeks to reduce costs and realign its priorities in response to changing market conditions, according to a source familiar with the decision. The layoffs, which were communicated to affected employees on Friday, span across various divisions within the company. Some of the cuts were attributed to underperformance, while others were part of a broader restructuring process aimed at refocusing the company’s priorities.

A significant portion of the layoffs affected workers at GM's global technical center in Warren, Michigan, near Detroit. However, a small number of hourly workers were also impacted. The company is targeting $2 billion in fixed cost reductions this year, as it grapples with slowing sales in the US , a downturn in its Chinese business, and a shift in its strategy for electric vehicles, which has seen slower consumer adoption than anticipated.

GM spokesperson Kevin Kelly confirmed the layoffs in a statement, but declined to provide the exact number of job cuts. “In order to win in this competitive market, we need to optimize for speed and excellence,” Kelly said. “This includes operating with efficiency, ensuring we have the right team structure, and focusing on our top priorities as a business. As part of this continuous effort, we’ve made a small number of team reductions. We are grateful to those who helped establish a strong foundation that positions GM to lead in the industry moving forward.”

This latest round of layoffs follows the dismissal of over 1,000 salaried employees in GM’s software and services division in August. At the end of 2023, GM's global salaried workforce numbered 76,000, with approximately 53,000 based in the US The United Auto Workers union, which represents GM’s hourly employees, did not immediately respond to requests for comment.