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GM lays off 1,000 employees amid reorganization and cost cutting
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GM lays off 1,000 employees amid reorganization and cost cutting

    General Motors World Headquarters (Paul Hennessy / SOPA Images/LightRocket via Getty Images file)

General Motors global headquarters in Detroit, July 31, 2019.

DETROIT — General engines laid off about 1,000 employees Friday as the automaker tried to cut costs and realign its priorities amid changing market conditions, according to a person familiar with the matter.

The layoffs, which were announced to those affected on Friday morning, affected the entire company. Some were due to poor performance, while others were part of an overhaul to reorganize the automaker’s priorities, according to the person, who agreed to speak about the decision on condition of anonymity.

The majority of affected employees were in suburban Detroit at the automaker’s global technical center in Warren, Michigan, the source said. A small number of hourly employees were included in the layoffs.

A GM spokesperson confirmed the layoffs but declined to disclose the total amount.

“In order to win in this competitive market, we must optimize for speed and excellence,” GM spokesman Kevin Kelly said in an emailed statement. “This means operating efficiently, ensuring we have the right team structure and focusing on our key priorities as a business. As part of this ongoing effort, we have made a small number of team reductions. We are grateful to those who helped build a strong foundation that will position GM to become an industry leader in the future.

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Friday’s layoffs follow more than 1,000 employees his job in GM’s software and services organization was laid off in August.

GM’s global employee workforce stood at 76,000 at the end of last year. This included approximately 53,000 U.S. employees.

The United Auto Workers union, which represents the automaker’s hourly employees, did not immediately respond to comment.