Active Stocks
Tue Jun 18 2024 15:44:35
  1. Tata Steel share price
  2. 181.15 -1.04%
  1. Power Grid Corporation Of India share price
  2. 331.70 3.17%
  1. State Bank Of India share price
  2. 844.60 0.52%
  1. HDFC Bank share price
  2. 1,608.75 0.71%
  1. Wipro share price
  2. 491.85 3.04%
Business News/ Companies / News/  Joining the layoff trend, General Motors sacks hundreds of employees to reduce cost
BackBack

Joining the layoff trend, General Motors sacks hundreds of employees to reduce cost

Joining other tech firms who are cutting their work force, General Motors made performance related job-cuts. The layoff is reported to affect around 500 employees of the company

General Motors is performing performance related job cuts. (REUTERS)Premium
General Motors is performing performance related job cuts. (REUTERS)

In an effort to boost profits and reduce its headcounts, General Motors has joined the bandwagon of job cuts. The automaker is making some performance-related job cuts among its salaried employees and executives. The job cut is expected to affect a small faction of the company's workforce, stated GM.

Also Read: GM union wants new offer as dispute goes into mediation

Even though there has been no specific clarification about the number of laid off employees by the company, the job cut is expected to affect over 500 employees, reported CNBC. Currently, the Detroit automaker employs around 81,000 people across the world. The company has informed the employees on an internal memo, said Chief People Officer Arden Hoffman. He also informed that the impacted workers have also started leaving the company.

Also Read: Goldman considers shrinking its consumer business

Notably, the job cut has come at a time, when the company CEO announced a month ago that they won't be doing any job cuts in the near time. General Motors Chair and CEO Mary Barra said during an earning call that the company is planning to cut on its costing and save around $2 billion over the next two years. To do so, the company will strive to reduce complexity in all four products and reduce corporate overhead expenses across board. He also ensured that the company is not planning any layoff.

Also Read: Govt plans revamp of auto insurance policy

“The areas we're focusing on include continuing to reduce complexity in all of our products, and reducing corporate overhead expenses across the board. I do want to be clear, though. We're not planning layoffs. We are limiting our hiring to only the most strategically important roles and will use attrition to help manage overall head count," she said at the time.

In a an emailed statement, the company said the recent cuts were the result of the company performance and will help in company's cost reduction effort.

Earlier, GM competitor, Ford Motors had announced to end 3,800 jobs over the next three years in Europe as part of its restructuring program to improve its cost structure.

(With agency inputs)

 

3.6 Crore Indians visited in a single day choosing us as India's undisputed platform for General Election Results. Explore the latest updates here!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 02 Mar 2023, 09:43 AM IST
Next Story footLogo
Recommended For You