GM laying off hundreds of workers to cut costs

General Motors is making efforts to streamline operations and reduce expenses.

A person briefed on the situation told Reuters on Tuesday that the plan will result in the elimination of hundreds of salaried executive-level positions.

The individual stated that global reductions are in the “low hundreds.”

In a letter to employees, GM Chief People Officer Arden Hoffman stated that the company is committed to saving $2 billion over the next two years.

In January, the automaker stated that no layoffs were planned, and on Tuesday, it did not refer to the cuts as layoffs.

GM said the job action Tuesday “follows our most recent performance calibration and supports managing the attrition curve as part of our overall structural costs reduction effort.”

In extended trading, GM shares fell slightly and closed down 1.5%.

In an effort to cut costs, Ford announced last month that it was eliminating 3,800 positions in product development and administration, or one in every nine jobs in Europe.

On Monday, Stellantis and the unions came to an agreement to make up to 2,000 voluntary layoffs from the carmaker’s Italian operations this year.

A plant in Illinois with approximately 1,350 employees was put on indefinite standby on Tuesday by Stellantis.