GM laid off about 1,000 employees last Friday, the company confirmed Engine1. To add an extra dose of acid to the situation, employees were reportedly notified via early morning emails. According to the Detroit Free PressThe layoffs affected both salaried and hourly workers.
A GM representative provided the following statement Engine1.
“To win in this competitive market we must optimize for speed and excellence. This includes working efficiently, ensuring we have the right team structure and focusing on our top priorities as a business.”
It is unclear whether the layoffs targeted specific departments within the company. The Detroit Free Press reports that at least one layoff involved a former employee with decades of experience and a long track record. Some of the layoffs affected UAW hourly workers, prompting UAW Vice President Mike Booth to pledge a fight to restore those positions.
“GM is trying to cut about 50 UAW jobs while making record profits,” he said, according to the newspaper. Detroit Free Press.
Some of the job cuts stem from GM’s decision to end operations at its Yuma, Arizona, proving ground, which is used for desert and hot-weather testing. The news comes not long after Stellantis announced the closure of its Arizona factory, which is largely used by GM’s rival, Fiat-Chrysler Automobiles. In addition, GM is closing the Durability, Corrosion and Teardown facilities at the sprawling Milford Proving Grounds complex northeast of Detroit. Rather than taking on this testing elsewhere in the company, the automaker will transfer responsibility to suppliers to ensure components meet durability and corrosion requirements.
The new round of layoffs comes amid declining demand for new vehicles, especially electric vehicles, in which GM has made heavy investments. The automaker previously let go about 1,500 employees in August, many of whom were tied to GM’s engineering center in Warren.