The GM logo is seen on the facade of General Motors' headquarters in Detroit on March 16, 2021.
Rebecca Cook | Reuters
DETROIT – General engines on Friday laid off about 1,000 workers as the automaker tries to cut costs and realign priorities amid changing market conditions, a person familiar with the decision said.
The layoffs, which were announced to those affected on Friday morning, took place across the company. Some were due to poor performance, while others were part of a review to reorganize priorities by the automaker, said the person, who agreed to speak about the decision on condition of anonymity.
A majority of the affected workers were in suburban Detroit, at the automaker's global technical center in Warren, Michigan, the person said. The layoffs included a small number of hourly employees.
The company is targeting $2 billion in fixed cost savings this year as it deals with slowing U.S. sales, deteriorating business in China and a shift in its all-in electric strategy. vehicles, while consumer adoption is slower than expected.
GM, Ford and Stellantis stocks.
A GM spokesperson confirmed the layoffs but declined to disclose the total amount.
“To win in this competitive market, we must optimize for speed and excellence,” GM spokesman Kevin Kelly said in an emailed statement. “This includes working efficiently, ensuring we have the right team structure and focusing on our top priorities as a business. As part of this ongoing effort, we have made a small number of team reductions. We are grateful to those who helped build a strong foundation that positions GM to lead the future industry.”
Friday's layoffs follow the layoffs of more than 1,000 employees working in GM's software and services organization in August.
At the end of last year, GM had 76,000 employees worldwide. That included about 53,000 U.S. workers.
The United Auto Workers union, which represents hourly workers at the automaker, did not immediately respond for comment.