General Motors Layoffs 2023: What to Know About the Latest GM Job Cuts
One of Motor City’s most iconic names is joining the growing list of companies laying off workers. General Motors (NYSE:GM) had previously been trying to hold out on job cuts. When it reported 2022 Q4 earnings on Jan. 31, CEO Mary Barra …
One of Motor City’s most iconic names is joining the growing list of companies laying off workers. General Motors (NYSE:GM) had previously been trying to hold out on job cuts. When it reported 2022 Q4 earnings on Jan. 31, CEO Mary Barra stated, “I do want to be clear that we’re not planning layoffs.”
Just over one month later, however, the auto giant has announced that it will be cutting roughly 500 salaried jobs, chiefly at the executive level. GM stock isn’t reacting poorly to this news. In fact, it’s in the green today, but that doesn’t mean investors shouldn’t be thinking about the General Motors layoffs and what they may mean for the company’s future.
A Closer Look at the General Motors Layoffs
It’s been a complicated month for GM stock, which has been trending downward for the past two weeks. It enjoyed some growth in early February after announcing a partnership with chipmaker GlobalFoundries (NASDAQ:GFS), but the momentum has since faded.
Now, the General Motors layoffs are looming and may lead to further uncertainty from investors, making it harder for the stock to rally in the short term. Per The Detroit News:
“The move, delivered amid impressive profitability, signals the evolving impact of electrification on legacy automakers like GM. The company isn’t providing the exact number of employees affected in the United States and sites overseas: as of December 2022, GM employed about 86,000 hourly employees and 81,000 salaried employees worldwide.”
Those numbers should help put the news in context, though. Cutting 500 jobs out of 81,000 is a very small percentage. But more important to note is the fact that GM is in a period of transition. The company is hyper-focused on shifting its resources and operations to electric vehicle (EV) production.
Wedbush Analyst Daniel Ives recently stated “cost-cutting is part of this process,” indicating that investors shouldn’t be worried. On top of its EV push, General Motors is also working hard on developing its own EV battery platform, another likely growth catalyst on the road ahead. GM stock will likely shake off the impact of layoffs and continue growing as the market rebounds.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.
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