General Motors (GM) announced Friday it is is laying off some 1,000 workers worldwide, cutting costs as it tries to compete in a crowded global automobile market.
The GM workers impacted, mostly white collar, were told early in the morning as they prepared for the weekend. The company confirmed the layoffs in a statement but gave few details, AP reports.
The move comes on the back of a recent GM recall for 450,000 vehicles due to a fault in the braking system.
“We need to optimize for speed and excellence,” the statement said. “This includes operating with efficiency, ensuring we have the right team structure and focusing on our top priorities.”
The AP report noted the broader reasons for the layoffs in tight manufacturing markets across the globe:
GM and other automakers have been navigating an uncertain transition to electric vehicles both in the U.S. and worldwide, trying to figure out where to invest capital and how fast the switch will happen.
The company has had to develop and update gas-powered models while investing in EV battery and assembly plants as well as minerals and other parts for the next generation of electric vehicles.
GM has about 150,000 employees worldwide, with the largest group at its technical center in the Detroit suburb of Warren, Michigan. The company has about 40,000 white-collar workers.
These layoffs come after GM in August laid off more than 1,000 salaried employees working in its software and services organization.
