The US car manufacturer General Motors lays off almost 1,000 employees worldwide. Most positions will be in the USA will be eliminated, a person familiar with the process said on Friday. The company confirmed job cuts. In order to survive in the intensely competitive market, the group has to become faster. As part of this effort, positions would be eliminated.
An employee had previously announced on LinkedIn that he had been fired via email along with numerous other employees. Just in August, GM laid off more than 1,000 employees in its IT department, and in September 1,700 workers had to leave a plant in Kansas.
Car market in crisis
However, things are going well for the company with a view to the last quarterly figures At the end of October, significantly better than the other two major US manufacturers: ford struggles with costly quality issues and difficulties in the electric car business, Stellantis with the US brand Chrysler with a decline in sales and full inventories in the USA. In Europe, the weak market is also causing problems for car companies: European car market continued its decline last month, new registrations fell by 6.1 percent in September. Unlike Ford and Stellantis, GM does not have any significant European business.
Just a few months ago, General Motors raised its full-year profit forecast to $13 billion to $15 billion and now expects earnings to be at the upper end of this range. GM boss Mary Barra (62) also promised a similar profit for next year.
Although prices could come under pressure, cost reductions in the SUV and SUV business Electric cars as well as an improvement in China should compensate for any possible decline. In the People’s Republic, GM recently slipped into the red and is planning to reorganize its business there. CFO Jacobsen said that the reorganization was still pending, but sales were already increasing and inventories were emptying.