The media reported that General Motors, the automaker, is laying off hundreds of workers from the company. This move is part of the company’s efforts to preserve cash and boost profits, following in the footsteps of other major companies, including competitors, that have downsized their headcounts. The layoffs are taking place in San Francisco, and the news was reported on March 1st.
CNBC, citing sources, reported that the cuts announced internally on Tuesday by General Motors affected about 500 positions across the company’s various functions.
The timing of the job cuts by General Motors seems odd, as they come roughly a month after CEO Mary Barra and CFO Paul Jacobson told investors that the company was not planning any layoffs.
According to a report, GM’s Chief People Officer Arden Hoffman confirmed in a letter sent on Tuesday that the company aims to achieve $2 billion in cost savings over the next two years. The savings will be achieved by reducing corporate expenses, overhead, and complexity across all of the company’s products.
According to the report, General Motors reiterated in an emailed statement that the cuts were a result of performance and would help with “managing the attrition curve as part of our overall structural cost reduction effort”.