As GM continues to drive towards its vision of an all-electric future, the 2023 calendar year is shaping up to be a critical turning point, with several high-profile EV models set to launch, including the Chevy Silverado EV and GMC Sierra EV, among others. Now, in an effort to reduce overall costs, GM is cutting jobs in the U.S. and abroad.
GM declined to specify how many jobs would be cut in this latest cost reduction effort, stating that the job cuts affect “a relatively small number of salaried employees and executives.” GM currently has 81,000 salaried employees worldwide. Employees affected by this latest cost reduction effort departed the company as of Tuesday, and will receive a severance package based on seniority.
In a recent report, Detroit Free Press indicates that several hundred jobs will be eliminated around the world, mostly in the U.S. The latest job cuts are tied to GM’s broader plan to reduce costs by $2 billion over the next two years. Further cost savings will be achieved via reduced corporate expenses, reduced overhead, and reduced product complexity.
In an internal GM communication sent to GM employees on Tuesday from chief people officer Arden Hoffman, GM outlined some of the changes going forward, as well as the reasoning behind them, stating:
“To deliver on our commitments and to beat the competition, we need to have the winning team, bar none. We need a culture shift that enables us to hold ourselves accountable for achieving the higher levels of operating that are now required. We’ve already made changes to make the experience around performance simpler and more meaningful, via more frequent conversations between leaders and employees.”
“This is a fundamental cultural shift to be more performance-driven and accountable,” the internal communication continues. “It’s clear our team is very strong, we have the right growth strategy, product portfolio, and vision. Working together, we are going to win.”
GM has also stated that it will limit hiring to its most strategically important roles, and will use attrition to manage head count.
Meanwhile, GM’s crosstown rival, Ford Motor Company, will eliminate 3,800 hourly and salaried jobs in Europe over the next three years, while Stellantis is set to eliminate 2,000 jobs from its Italian operations this year.