Automaker giant General Motors has reportedly laid off nearly 500 employees. As per updates, the layoffs at General Motors have reportedly happened as the company wants to cut its costs in the event of a gloomy global economic situation.
The layoffs at General Motors have reportedly happened as the company wants to cut its costs in the event of a gloomy global economic situation
Automaker giant General Motors has reportedly laid off nearly 500 employees. As per updates, the layoffs at General Motors have reportedly happened as the company wants to cut its costs in the event of a gloomy global economic situation.
According to a Reuters report, through these layoffs General Motors also plans to streamline its operations. It adds that the “global reductions are in the low hundreds.”
Referring to the sacking of employees at General Motors, the report adds that the company’s chief people officer Arden Hoffman, in a letter to employees, said that General Motors 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 our products.”
However, back in January, General Motors did not plan any layoffs. But now, with the recent job cuts too, the report adds that the automaker does not characterise these job cuts as layoffs.
The layoffs at General Motors come just a few weeks after its competitor Ford Motor too, decided to axe about 3,800 jobs. Even Ford succumbed to layoffs in an effort to lower costs and concentrate more resources in terms of the engineering know-how in the United States (US).
All these mass layoffs at various companies are largely being seen as an aftermath of the global economic downturn. At a time when costs of commodities and services are running very high, companies are trying to step up and reduce those costs through various measures – one of them being layoffs.