AutoBeta(AutoBeta.net)04/06 Report--

Recently, the "wave of layoffs" and other cost-cutting measures that have plagued the technology industry seem to be beginning to spread to the auto industry.

Paul Jacobson, GM's chief financial officer, said about 5000 employees chose to participate in the acquisition plan announced last month, which aims to reduce carmakers' global headcount and fixed costs, according to CNBC. GM expects to spend about $100 million this quarter as a result of the plan.

In early March, GM CEO Mary Barra said in a letter to employees that GM had 58000 white-collar workers in the US and would offer voluntary buyouts for most of them to cut structural costs by $2 billion over the next two years.

According to GM, the Voluntary departure Program (VSP) will be available to US employees who have worked at the company for at least five years, as well as global executives who have worked for at least two years. The voluntary separation programme provides eligible employees with an opportunity to change jobs or retire early, and ordinary employees who accept the scheme will receive a salary of up to 12 months, one month per year of work, together with health insurance under the uniform Integrated Budget Coordination Act. pro rata performance bonuses and placement services. GM said white-collar workers interested in the plan need to submit applications by March 24, and employees who accept the plan will leave the company by June 30. GM CEOMary Barra said involuntary action would be needed if there were not enough employees to participate in the program.

By the end of 2022, GM had about 81000 salaried employees worldwide, including 58000 in the United States, according to public documents. As a result, the 5000 layoffs account for 6 per cent of the company's total salaried workforce. "We strongly encourage employees to consider this project to improve the profitability of cars by reducing structural costs and remain flexible in an increasingly competitive market," GM said in a statement. "

Arden Hoffman, GM's chief human resources officer, said in a letter to employees that the company is "committed to $2 billion in cost savings over the next two years, which will be achieved by reducing company expenses, administrative expenses and the complexity of all products."

Earlier, Ford also said it would cut 1/9 jobs in Europe, mainly related to product development and administration, as part of efforts to reduce costs in Europe and centralize engineering technology in the United States. In addition, US new power brands Rivian Automotive and Lucid Group have announced layoffs one after another, with Rivian announcing 6% layoffs and Lucid planning 18% layoffs.

In February, SAIC GM issued a "solemn statement" on official account after it was rumored that it was preparing for major layoffs due to falling sales and planned to buy out employees over the age of 45.

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