GM Aims to Save $2 Billion in 2 Years
A GM spokesperson recently updated Motor1.com, saying: “We are not confirming specific locations or a specific number – except to say that this affects a relatively small number of salaried employees and executives. GM has 81,000 salaried employees worldwide.” This statement was made in response to reports of the automaker’s plan to reduce their workforce. Although the exact number of employees that will be impacted remains unknown, it is certain that the number is relatively small compared to the total salaried staff.
General Motors is reducing its executive and salaried workforce globally by around 500, per relevant data procured by The Detroit News. It remains unclear, however, how many of these vacancies are based in the United States. Motor1.com made contact with GM to request more information on this.
In 2022, a noteworthy figure of $14.5 billion was reported by GM. At the same time that it publicized the fiscal figures, GM declared its intention to cut back expense by $2 billion during the span of two years. Thirty to fifty percent of the savings would occur in 2023.
“I want to make it clear: We are not intending to layoff any employees,” GM Chief Financial Officer Paul Jacobson stated in regards to the plan. “We are only looking to hire for the most strategically important roles, and we will use attrition to ensure our overall headcount is managed appropriately.”
The suggested elimination of executives and salaried staff could predicate that the corporation is investigating other approaches to decrease its personnel.
GM forecasts its revenue will be diminished by 2023, expecting the amount to range from $10.5 billion to $12.5 billion.
“As we look to the future, we are committed to making EVs a major part of our business,” declared Mary Barra, CEO of the automaker, in a letter to shareholders. “We are accelerating production of the Cadillac Lyriq, GMC Hummer EV, and BrightDrop Zevo 600, and we will be launching vehicles such as the Chevrolet Silverado EV, Blazer EV, and Equinox EV.”
GM maintains that they have the capacity to manufacture greater than one million electric vehicles each year commencing in the year 2025. Additionally, they have a pact with Lithium Americas to get their requisite amount of lithium from Thacker Pass located in Nevada.
Source: The Detroit News