General Motors to cut hundreds of white collar workers in IT overhaul

[DETROIT] General Motors (GM) plans to cut hundreds of salaried workers from its information technology ranks in an effort to trim costs and clear the way to bring in staff with skills in other technology areas.

The reductions will affect about 500 to 600 employees, according to sources familiar with the matter. Management began notifying affected workers on Monday (May 11) morning, said the sources, who asked not to be identified discussing the private matter.

GM confirmed it was eliminating some jobs in response to inquiries from Bloomberg News. The reductions stem from an effort to transform its information technology department to better position the company for the future, GM said.

The carmaker’s shares fell 3.9 per cent at 12.27 pm in New York on Monday. The stock has retreated after reaching an all-time high earlier this year, falling about 3.1 per cent to Friday’s close compared with the S&P 500 Index’s 8.1 per cent advance.

The cuts will affect GM’s offices globally as the automaker works to boost earnings even as US sales stagnated to start the year. GM in October trimmed hundreds of salaried workers, in addition to thousands of blue collar staff who were laid off as GM’s investments in electric vehicles went sour.

The automaker has also been working to transform its own operations in IT development, adding more computing and software capabilities to its cars and using artificial intelligence in more of its operations.

SEE ALSO

GM lifts profit outlook as US truck sales boost first quarter

GM, Toyota report lower quarterly sales in US amid affordability concerns

GM sees profits growing US$2 billion this year and plans buybacks

GM to take US$6 billion writedown on EV pullback 

GM strikes deal to put Apple Music in all of its new vehicles

More

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

At the same time, GM has had to push for internal discipline as the company tries to grow profits with the Iran war stoking inflation.

The company has also made broad cutbacks in its electric vehicle operations in response to a slowdown in demand. GM has taken a total of US$8.7 billion in writedowns tied to its EV business. BLOOMBERG