On Friday morning, General Motors notified 1,000 employees that they have been fired. The car giant must cut back to make electric cars cheaper.
American General Motors has already fired a lot of people this year. And on Friday morning last week another 1,000 employees lost their jobs.
The layoffs are part of a broader effort to reduce the costs associated with electric cars. Including significant losses on the type of car.
According to General Motors, the company strives to cut somewhere between 13 and 27 billion kroner from the loss on electric cars already next year.
In an email sent early in the morning, the many affected employees were informed that they no longer have a job.
Among them was a now-former director of competitor analysis who shared the news in an industry group on social media.
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The layoffs include both hourly employees and white-collar workers. But the majority were among the permanent employees at the company's global technology center in Warren, Michigan.
This latest move follows earlier mass layoffs this year. In August, over 1,000 software engineers and people in related positions were laid off.
Already the following month, 1,700 production employees were laid off in Kansas. As a result, General Motors has overall reduced its workforce by more than 3,700 people in 2024.
Reuters writes that.
General Motors' many cuts come in the wake of electric car sales that are not at all good for the giant. A giant that resurrected itself with the help of the US state after bankruptcy in 2009.
GM has also already announced that it will not invest as heavily in electric cars as before. Instead of a full electrification, the company now chooses to focus more on hybrid models and plug-in hybrids, which are expected to hit the market before 2027.
So do Ford and Volvo, who between 1999 and 2010 were part of the same company.
Back at General Motors, you may run into further problems because of the political landscape that Donald Trump will once again set his sights on when he is sworn in as president in January.
Back in 2023, General Motors also signed an agreement with the United Auto Workers (UAW) union that included investments of more than DKK 40 billion in new electric car projects, including upgrades to facilities in Michigan and Tennessee. It is not known whether the new layoffs will cause that agreement to falter.
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