General Motors to fire 500 salaried employees; know details

General Motors is slated to remove 500 salaried employees in order to preserve cash and boost profits, as notified by a person familiar with the development to CNBC. In a Tuesday letter accessed by the news organisation, the company’s Chief People Officer (CPO) Arden Hoffman has confirmed that the corporation aims at $2 billion in cost savings in the next 2 years. According to Hoffman, this will be done by decreasing overhead, corporate expenses and complexity. As per the letter, the cuts will affect a small number of global executives and classified employees. The layoffs begun on Tuesday and will continue on the basis of location. The job cuts come after GM’s Chief Executive Officer (CEO) Mary Barra and Chief Financial Officer (CFO) Paul Jacobson told investors that the firm is not planning any layoff. Jacobson had previously said that the company expected to decrease the headcount via attrition instead of layoffs. The firm believes that they will help in managing the attrition curve as part of their overall effort for structural costs reduction. GM hired 86,000 hourly workers while 81,000 salaried staff annually at the end of last year. The 500 job cuts account for less than 1 percent of the GM’s salaried workforce. The automotive sector was largely unaffected by the job cuts until recently. But now, this industry is also witnessing lay offs after they plagued the technology sector. Ford Motor confirmed in February that it was planning to cut 3,800 jobs in Europe over the next 3 years. Around 2,300 jobs would be removed in Germany, 1,300 in the United Kingdom, and 200 elsewhere in Europe. The company has been cutting jobs in the product development and administration roles. Other automotive companies that announced layoffs are Rivian Automotive and Stellantis. Rivian Automotive has been laying off 6 percent of its workforce in its attempt to reduce costs. Similarly, Stellantis and unions recently inked an agreement to cut up to 2,000 workers from the carmaker’s Italian operations this year via voluntary redundancies. The redundancies account for over 4 percent of Stellantis’ present workforce in Italy of nearly 47,000 people. The job cuts particularly include roles that are not directly linked to the line production. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.