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GM cuts 1,000 more jobs to cut electric vehicle costs
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GM cuts 1,000 more jobs to cut electric vehicle costs

General Motors cut nearly 1,000 jobs Friday morning, adding to the thousands already laid off by the massive automaker so far in 2024, Reuters reports. A former associate director of GM Competition Intelligence told an industry Facebook group that the layoffs were communicated via an early morning email.

By CNBCthe layoffs were distributed “across the entire company” and mainly affected employees; some hourly workers were also laid off. According to Detroit Newsthe majority of the job cuts took place at the company’s Global Tech Center in Warren, Michigan.

After laying off more than 1,000 software engineers and support staff in August and 1,700 manufacturing workers in Kansas in September, GM’s workforce reduction for the year totals more than 3,700, the service said press release, as the company prepares to release between $2 billion and $4 billion in electric vehicle losses from its books through 2025.

Just a year ago, GM cemented a contract the UAW pledging, among other things, more than $6 billion to invest in new electric vehicle projects, including $4 billion for its Orion, Michigan, factory and $2 billion for Spring Hill Assembly in Tennessee.

As sales of premium electric vehicles falter and affordable alternatives arrive slowly or are completely ineffective, GM has joined others in the industry to moving away from an “all-in-one” electrification strategy in favor of a model that includes more hybrid and plug-in models. The first of these are expected to arrive by 2027.

President Trump’s re-election is forcing automakers to face a regulatory climate likely dramatically different than the past four years. The new administration has already vowed to roll back Biden-era electric vehicle incentives and dismantling other elements of the Inflation Reduction Act.

The previous Trump administration’s record on changing emissions policy was mixed, with most of its efforts focused on reducing California’s influence on U.S. auto policy (after suggesting that this would not be the case). The effort ended fracture the industry and ultimately failed.

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