GM lays off 500-600 salaried IT workers to cut costs

DETROIT – General Motors is laying off hundreds of salaried employees in its information technology operations as the automaker reevaluates its workforce needs and cuts costs, CNBC has learned.

The global reductions began Monday and will impact about 500 to 600 employees, largely in Austin, Texas, and Warren, Michigan, according to a person familiar with the plans who was not authorized to speak publicly about the layoffs.

GM confirmed the cuts, which were first reported by Bloomberg News, but declined to give specific details about the actions.

“GM is transforming its Information Technology organization to better position the company for the future. As part of that work, we have made the difficult decision to eliminate certain roles globally. We are grateful for the contributions of the employees affected and are committed to supporting them through this transition,” the automaker said in an emailed statement.  

GM reported employing about 68,000 salaried workers globally as of the end of last year, including 47,000 white-collar employees in the U.S.

Despite Monday’s cuts, GM is still hiring IT workers. The company has 82 open IT positions that include jobs working in artificial intelligence, motorsports and autonomous vehicles, according to the Detroit automaker’s careers website.

GM in recent years has routinely reevaluated its salaried workforce, based on expected needs and skill sets. In October, the company laid off more than 200 Computer-Aided Design, or CAD, engineers due to “business conditions.”