• General Motors is cutting hundreds of white-collar jobs as part of a cost-reduction initiative aimed at preserving margins amid the EV transition.
  • The layoffs are expected to target salaried employees in non-engineering roles, though exact numbers and departments remain unconfirmed.
  • The move comes as GM navigates higher costs from EV ramp-up and ongoing supply chain pressures, with analysts watching for margin impact.

General Motors Co. is laying off hundreds of white-collar workers in a bid to slash costs and streamline operations, according to people familiar with the matter. The cuts, which are expected to affect salaried employees primarily in administrative and support functions, underscore the automaker's efforts to maintain profitability as it invests heavily in electric vehicle production.

The layoffs, which could be announced as early as this week, are part of a broader restructuring that GM has undertaken to improve efficiency and offset rising costs from battery plants and new model launches. The company has not publicly disclosed the exact number of jobs affected, but sources say the reduction will be in the hundreds, not thousands.

"GM is committed to optimizing its cost structure to ensure long-term competitiveness," a spokesperson said, declining to comment on the specific layoffs. The company has been under pressure from investors to demonstrate progress on its EV transition while maintaining strong margins, especially as competitors like Ford (F) and Tesla (TSLA) engage in price wars.

The cuts come on the heels of GM's mixed quarterly results, where the company beat earnings estimates but warned of headwinds from higher raw material costs and slower-than-expected EV adoption. The layoffs are seen as a preemptive move to protect its bottom line, particularly in its traditional internal combustion engine business, which remains the primary profit driver.

Industry analysts note that white-collar reductions are not uncommon in the auto industry during periods of transformation. "GM is following a playbook we've seen before: trim the fat in non-core areas to free up funds for EVs and software," said an analyst who asked not to be named. The automaker has previously announced plans to cut $2 billion in costs by the end of 2024.

Correction: An earlier version of this article incorrectly stated the number of job cuts. The reduction is expected to be in the hundreds, not thousands.