GM Layoffs 2023: 500 Lose Jobs Month After CEO Said Company 'Not Planning' Cuts

General Motors Co. has laid off 500 executive-level and salaried employees just a month after its CEO said the company was "not planning layoffs" amid major job cuts across the automotive industry.

The company aims to save $2 billion over the next two years by reducing overhead and corporate expenses, according to a Detroit News report.

"Today's action follows our most recent performance calibration and supports managing the attrition curve as part of our overall structural costs reduction effort," spokesman David Barnas said in a statement Tuesday. "This action impacts a small number of salaried employees and executives globally."

Barnas said that the company is focusing on accountability and efficiency this year.

"To deliver on our commitments and win in this industry, we must have a winning team and hold ourselves accountable for performing at a high level; by focusing on our efficiency, we are preparing for a more competitive environment," Barnas said.

The recent move contradicts GM CEO Mary Barra's statement during an earnings call in January that the company was not planning layoffs amid cost-cutting strategies.

"The areas we're focusing on include continuing to reduce complexity in all of our products and reducing corporate overhead expenses across the board," Barra said, as quoted by Auto News. "I do want to be clear, though: We're not planning layoffs. We are limiting our hiring to only the most strategically important roles, and we'll use attrition to help manage overall headcount."

As of December 2022, GM had about 86,000 hourly employees and 81,000 salaried employees worldwide. The 500 job cuts make up less than 1% of GM's salaried workforce.

In a letter to shareholders on Jan. 31, Barra said that the company earned a record $14.5 billion for 2022 while its hourly employees earned a record profit-sharing totaling $500 million. The earnings bring GM's three-year total to $1.2 billion.

"Their hard work helped us deliver industry-leading initial quality and meet strong customer demand," Barra said.

Further, the CEO called 2023 the company's "breakout year" since they expect to deliver $10.5 billion to $12.5 billion in profits for this year.

GM is currently investing billions in electric vehicles after its Chevrolet Bolt EV and Bolt EUV saw record sales last year. The automaker reportedly expects its capital spending to total between $11 billion and $13 billion, with most of the budget reserved for EVs, according to Detroit News.

"We continue to shift resources to EVs, with around 75% of our product-specific capital dedicated to EVs and AVs," GM CFO Paul Jacobson said on Jan. 31, as quoted by the same outlet.