Over the weekend, General Motors Co implemented a workforce reduction that affected several hundred full-time contract employees, including those at its engineering center located in the outskirts of Detroit. This move is part of the company’s ongoing efforts to optimize its operations.
GM has announced job cuts for contractors within its global product development team based at locations such as the Warren Tech Center. The news was first reported by The Wall Street Journal. As a result, GM shares rose by 2% to $33.73.
In April, GM disclosed that around 5,000 salaried employees had accepted buyout packages to leave the company. Earlier in February, Reuters had reported that GM had already cut hundreds of executive and salaried jobs.
Last month, GM’s CEO Mary Barra stated in an employee memo that the job cuts in February and the 5,000 buyouts had contributed approximately $1 billion towards the company’s goal of saving $2 billion.
In the face of inflationary challenges, automakers have been able to mitigate the impact through increased vehicle demand and price hikes. General Motors (GM) exceeded Q1 earnings expectations and revised its projections for full-year profits and cash-flow upwards.
Meanwhile, Stellantis NV, the parent company of Chrysler, has offered 33,500 employees voluntary exit packages as part of its efforts to streamline its North American operations. This initiative is focused on reducing the number of jobs held by 31,000 hourly workers and approximately 2,500 salaried workers, though the total number of jobs to be cut has not been disclosed. Stellantis is also offering voluntary buyouts to some Canadian employees.
In Europe, Ford Motor Co has recently announced substantial job cuts in Spain, Germany, and other areas. In August, it also revealed plans to eliminate 3,000 salaried and contract jobs, primarily in North America and India.