The GM logo is seen in front of the General Motors headquarters in Detroit on March 16, 2021.
Rebecca Cook | Reuters
DETROIT – General Motors It laid off about 1,000 employees on Friday as the automaker tries to cut costs and adjust priorities amid changing market conditions, according to people familiar with the decision.
The layoffs, which were announced Friday morning for those affected, are in business. Some are due to poor performance, while others are part of a review to adjust priorities by the automaker, according to the person, who agreed to speak about the decision on condition of anonymity.
The majority of the affected employees are salaried workers in suburban Detroit at the automaker’s global technical center in Warren, Michigan, the person said. The United Auto Workers said about 50 union members were included in the layoffs.
The company is targeting $2 billion in fixed cost reductions this year as it deals with sluggish U.S. sales, a slump in business in China and a shift to an “all-in” strategy for electric vehicles amid slower-than-expected consumer adoption.
Shares of GM, Ford and Stellantis.
A spokesman for GM confirmed the layoffs but declined to reveal the total amount.
“To win in this competitive market, we must maximize speed and excellence,” GM spokesman Kevin Kelly said in an emailed statement. “This includes operating with efficiency, ensuring that we have the right team structure, and focusing on our top priorities as a business. As part of this ongoing effort, we have made several team reductions. We are grateful to those who helped make a strong foundation that makes GM a leader in a thriving industry.”
UAW Vice President Mike Booth, who oversees the union’s GM unit, condemned the layoffs. “GM is trying to cut around 50 UAW jobs, while they are making record profits. We will fight for members laid off with the full force of our contract,” he said in an email statement.
Friday’s layoffs follow more than 1,000 salaried employees working at GM’s software and services organization being let go in August.
GM’s global payroll workforce was 76,000 at the end of last year. That includes about 53,000 U.S. payroll employees.
