Monitoring Desk
ISLAMABAD/MICHIGAN: A person briefed on the issue told Reuters that General Motors Co (GM) is cutting hundreds of executive level and also salaried jobs as it looks to cut costs and also streamline operations.
The person said that the world reductions are in the “low hundreds”. Arden Hoffman, GM Chief People Officer, said in a letter to workers on Tuesday that the Detroit automaker is “committed to 2 billion dollars in cost savings in the next years, which we will find by reducing corporate expenses, overhead, and complexity in all our products.” The automaker said it didn’t plan layoffs in January and on Tuesday didn’t characterize the cuts as layoffs.
GM stance on job action
GM said Tuesday’s job action “follows our latest performance calibration and supports managing the attrition curve as a part of our overall structural costs reduction effort.” Hoffman said, “in the environment where our competitors’ margins are improving, it’s imperative that we now act and focus on our efficiency.”
Hoffman added, “to deliver on our commitments and beat the competition, we need to have the winning group, bar none. We need a culture shift that enables us to hold ourselves accountable for attaining the higher levels of operating that are now required.”
Hoffman said, “internationally, workers and leaders will be equipped with options to address any problems with greater urgency, so we can achieve our own boldest aims… This is the fundamental cultural shift to be more performance-driven and accountable.”
