General Motors cuts 500 salaried employees

DETROIT – General Motors is cutting hundreds of salaried positions arsenic it follows different large companies, including competitors, successful downsizing headcounts to sphere currency and boost profits.

The cuts impact astir 500 positions, according to a idiosyncratic acquainted with the plans, which were announced internally Tuesday. They volition beryllium crossed assorted functions of the company, said the person, who asked not to beryllium named due to the fact that the plans are not public.

The timing of the cuts, which were first reported by The Detroit News, is odd. They travel astir a period aft GM CEO Mary Barra and CFO Paul Jacobson told investors that the institution was not readying immoderate layoffs.

In a Tuesday missive viewed by CNBC, GM Chief People Officer Arden Hoffman confirmed the company's extremity of $2 cardinal successful outgo savings implicit the adjacent 2 years, which "we'll find by reducing corporate expenses, overhead, and complexity in all our products."

The missive characterized the cuts,  which travel show evaluations, would impact a "small fig of planetary executives and classified employees pursuing our astir caller show calibration." The cuts started Tuesday and volition proceed based on location.

The institution reiterated the cuts being a effect of show successful an emailed statement, saying the cuts assistance successful "managing the attrition curve arsenic portion of our wide structural costs simplification effort."

At the extremity of past year, GM employed astir 86,000 hourly workers and 81,000 salaried employees worldwide. The 500 occupation cuts make up less than 1% of GM's salaried workforce.

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