General Motors Co. is cutting “several hundred” contract jobs as part of its $2 billion cost-savings program, the automaker confirmed Monday.
“A small number of contractors have departed the company, and those impacted were notified beginning April 29,” GM spokesperson Maria Raynal said in a statement.
The contract employees work at GM’s Global Technical Center in Warren and other locations. The Detroit Free Press first reported the contract worker reductions on Monday.
To cut $2 billion by the end of next year, GM has already offered buyouts to most of its salaried workforce. In early April, GM CFO Paul Jacobson said 5,000 employees would take the buyout. During GM’s first-quarter earnings report, Jacobson said that with the buyout program, the automaker expects to reach about 50% of its $2 billion goal this year.
Beyond buyouts, GM is also looking to cut discretionary spending in areas such as corporate travel and marketing, and focus on prioritizing growth areas that offer the largest returns on revenue and margin, executives said during earnings.
Also as part of the cost-cutting measures, in late February the Detroit automaker said it was cutting about 500 executive-level and salaried jobs. That news came a month after CEO Mary Barra said General Motors Co. was “not planning layoffs.”
GM isn’t alone in cutting jobs to cut costs. Last week, Stellantis NV confirmed it would ask more than 33,500 hourly and salaried employees to consider taking voluntary buyouts.
khall@detroitnews.com
Twitter: @bykaleahall