GM continues employee layoffs by cutting 1000 jobs this November. Also known as General Motors, this layoff is the company’s third employee layoff in 2024.
ANOTHER LAYOFF
Earlier in 2024, GM had already executed two employee layoffs. These job cuts are part of the company’s strategy to reduce costs by 3.1 billion AUD this year. According to Paul Jacobson, GM’s Chief Financial Officer, the company is successfully on time achieving this target. However, GM mentioned that the layoff is not entirely due to its strategy, but a part of the usual course of business.
In its official statement, GM did not expound on the details of its most recent lay-off. “We need to optimize for speed and excellence. This includes operating with efficiency, ensuring we have the right team structure and focusing on our top priorities,” the statement said.
According to NBC News, some employees were furloughed due to evaluations of their individual performances. The majority of its laid-off employees were salaried white-collar workers. The company alerted their workers of their final employment status, last week, on Friday. Additionally, they were provided with severance pay equivalent to wages up to January 2025.
In previous layoffs, the company offered its employees voluntary buyouts, provided they have been with GM for at least 5 years. The company reported 5000 of its former employees accepted this offer. This decision, according to GM, helped curb potential additional layoffs.
GM RECENTLY
According to union representatives, GM has currently made “record-breaking profits” amidst its continuous layoffs. Though their performance sees improvement from the past year, GM’s growth is sluggish with only a 7.2 per cent increase.
The company has heavily invested in manufacturing EVs despite the world’s slow adoption. EV sales may be strong in Europe, but are still slow in North America, GM’s home region. Just last week, the company recalled some 400,000 – 500,000 vehicles due to an issue with its transmission. GM is one of many brands that have struggled in fully adapting to the evolving automotive market. The company has already shut down several of its plants in the United States despite being one of the first established automakers to begin their EV shift.
Despite this, GM has not disclosed if this will be the final lay-off for the year or the near future. It seems the company’s lay-off measures will continue if it sees the decision fit to its cost-cutting strategy.
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