General Motors – parent company of Chevrolet, Hummer among other brands – is following competing major corporations in cutting hundreds of jobs in order to reduce costs and increase profits, according to Reuters citing a person briefed on the matter.
The plans that were announced internally stated that the cuts will affect approximately 500 positions. They will be spread across the company’s various functions, according to the person who asked to remain anonymous since the plans are not public.
GM Chief People Officer Arden Hoffman said in a letter to employees that the automaker is “committed to $2 billion in cost savings in the next two years, which we’ll find by reducing corporate expenses, overhead, and complexity in all our products.”
GM isn’t the only automaker cutting jobs; earlier this month, Ford Motor announced that it would eliminate 3,800 positions in product development and administration in Europe as part of a drive to reduce costs in the region and concentrate engineering know-how in the United States.
Stellantis and unions agreed on Monday to cut up to 2,000 workers from the carmaker’s Italian operations through voluntary redundancy this year. Stellantis indefinitely shut down a plant in Illinois that employs approximately 1,350 people on Tuesday.