GM lays off 1,000 employees amid reorganization, cost-cutting

DETROIT – General Motors laid off roughly 1,000 employees on Friday as the automaker attempts to cut costs and realign priorities amid changing market conditions, according to a person familiar with the decision.

The layoffs, which were announced Friday morning to those impacted, were across the business. Some were due to poor performance, while others were part of a review to reorganize priorities by the automaker, according to the person, who agreed to speak about the decision on the condition of anonymity.

A majority of the employees impacted were salaried workers in suburban Detroit at the automaker’s global technical center in Warren, Michigan, the person said. The United Auto Workers said about 50 union members were included in the layoffs.

The company is targeting $2 billion in fixed cost reductions this year as it deals with slowing U.S. sales, business deterioration in China and a shift in its “all-in” strategy for electric vehicles amid slower-than-expected consumer adoption.

A spokesman for GM confirmed the layoffs but declined to disclose the total amount.

“In order to win in this competitive market, we need to optimize for speed and excellence,” GM spokesperson Kevin Kelly said in an emailed statement. “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.” 

UAW Vice President Mike Booth, who oversees the union’s GM unit, condemned the layoffs. “GM is trying to cut around 50 UAW jobs, when they’re making record profits. We will fight for our laid off members with the full force of our contract,” he said in an emailed statement.

Friday’s layoffs follow more than 1,000 salaried employees working in GM’s software and services organization being let go in August.

GM’s global salaried workforce was 76,000 as of the end of last year. That included about 53,000 U.S. salaried employees.