General Motors (GM) is laying off approximately 1,000 workers globally as part of a cost-cutting effort to stay competitive in the increasingly crowded global automobile industry. The majority of the affected employees are white-collar workers, and they were informed of the layoffs on Friday morning. While the company confirmed the layoffs, it did not provide many specific details.
In a brief statement, GM explained that the restructuring is aimed at optimizing its operations for greater efficiency, speed, and excellence. The company emphasized the importance of having the right team structure and focusing on key priorities.
Like many other automakers, GM is navigating a complex transition to electric vehicles (EVs) in the U.S. and abroad. The company faces challenges in balancing investments in new EV technologies, including batteries and manufacturing plants, while still maintaining its production of gas-powered vehicles and securing necessary raw materials for future electric models.
As of September, new electric vehicle (EV) sales in the U.S. have risen by 7.2%, reaching approximately 936,000 units. While this growth is slower compared to the 47% increase seen in 2023, sales this year are expected to exceed last year’s record of 1.19 million units. The share of EVs in total new vehicle sales has also increased to 7.9%, up from 7.6% in 2023.