General Motors (GM) said Friday it will lay off about 1,000 employees worldwide and cut costs as it aims to compete in the crowded global auto market.
Affected GM employees, mostly white-collar workers, were told in the early morning hours as they were preparing for the weekend. The company confirmed the layoffs in a statement, but provided few details, the Associated Press reported. report.
The move comes after GM recently recalled 450,000 vehicles due to a defective brake system.
“We need to optimize for speed and excellence,” the statement said. “This includes operating efficiently, ensuring we have the right team structure and focusing on our top priorities.”
The Associated Press report points to widespread reasons for layoffs in tight manufacturing markets around the world:
GM and other automakers are trying to figure out where to invest capital and how quickly the transition will happen, with the transition to electric vehicles uncertain both in the U.S. and around the world.
The company needed to develop and update its gasoline engine models while investing in EV batteries, assembly plants, minerals and other components for next-generation electric vehicles.
GM has approximately 150,000 employees worldwide, with its largest group located at its technical center in the Detroit suburb of Warren, Michigan. The company has approximately 40,000 white-collar employees.
These job cuts come after GM laid off more than 1,000 salaried employees in its software and services division in August.
