General Motors is laying off another 1,000 workers, mostly at its Global Tech Center in Warren, offering the latest “unmistakable sign the auto industry is slowing.”
Patrick Anderson, CEO of Anderson Economic Group in East Lansing, told Bridge Michigan it’s also obvious “that consumers are expressing some reluctance about buying the higher-priced cars, notably electric cars.”
Anderson added: “Manufacturers are cutting back on their costs in anticipation of a further slowdown or even a recession.”
GM confirmed on Friday the 1,000 layoffs worldwide involve 507 salary and hourly employees at the Global Tech Center, including 34 working aftersales engineering, 40 in engineering operations, 26 in manufacturing engineering and two dozens in sales.
“In order to win in this competitive market, we need to optimize for speed and excellence,” GM spokesperson Kevin Kelly said in a statement cited by The Detroit News. “This includes operating with efficiency, ensuring we have the right team structure, and focusing on our top priorities as a business. As part of this continuous effort, we’ve made a small number of team reductions. We are grateful to those who helped establish a strong foundation that positions GM to lead in the industry moving forward.”
The Friday layoffs follow about three months after the carmaker let 1,000 employees go in August, including 600 at the Tech Center, as The Big Three have delayed vehicle launches, shut down factories and cut back on staff.
In late October, Ford idled its Rouge Electric Vehicle Center in Dearborn through Jan. 6, putting about 800 out of work amid what CEO Jim Farley described as a “slow uptake of EVs.”
