GM cutting hundreds of jobs to reduce costs

[Vereen]

Feb 28 (Reuters) - General Motors Co (GM.N) is cutting hundreds of
executive-level and salaried jobs as it looks to cut costs and streamline
operations, a person briefed on the matter told Reuters on Tuesday.

The global reductions are in the "low hundreds," the person said.

GM Chief People Officer Arden Hoffman said in a letter to employees on
Tuesday the Detroit automaker is "committed to $2 billion in cost savings
in the next two years, which we’ll find by reducing corporate expenses,
overhead, and complexity in all our products."

GM disclosed the $2 billion cost cut target in January. The automaker said
in January it did not plan layoffs and on Tuesday did not characterize the
cuts as layoffs.

GM said the job action Tuesday "follows our most recent performance
calibration and supports managing the attrition curve as part of our
overall structural costs reduction effort."

Hoffman said "in an environment where our competitors’ margins are
improving, it's imperative that we act now and focus on our own
efficiency."

Hoffman added that "to deliver on our commitments and to beat the
competition, we need to have the winning team, bar none. We need a culture
shift that enables us to hold ourselves accountable for achieving the
higher levels of operating that are now required."

GM shares closed down 1.5%.

Hoffman said "globally, employees and leaders will be equipped with
options to address any issues with greater urgency, so we can achieve our
boldest goals.... This is a fundamental cultural shift to be more
performance-driven and accountable."

Earlier this month, Ford Motor (F.N) said it was cutting one in nine jobs
in Europe, axing 3,800 roles in product development and administration as
part of a drive to lower costs in the region and concentrate engineering
know-how in the United States.

Stellantis (STLAM.MI) and unions on Monday signed an agreement to cut up
to 2,000 workers from the carmaker's Italian operations this year through
voluntary redundancies. On Tuesday, Stellantis indefinitely idled a plant
in Illinois that employs about 1,350 workers.

<https://www.reuters.com/markets/us/gm-cutting-hundreds-jobs-it-looks-
reduce-costs-2023-02-28/>