General Motors plans to eliminate about 200 engineering positions, though the employees in those roles will be able to move to other jobs.
In a statement, a GM spokesperson said the automaker “is taking steps to rebalance our engineering resources to better align with our growth strategy. This will require a small number of engineers to move to other parts of the organization over the next several months. We will work with those who are affected and provide them with an opportunity to apply for open positions.”
CEO Mary Barra said on GM’s second-quarter earnings call in July that the company is launching a strategy called “Winning with Simplicity,” which is expected to lower design and engineering costs and reduce complexity in vehicle orders and manufacturing. GM is aiming to cut trim levels in half, which “results in fewer part numbers to simplify marketing, engineering, manufacturing, while maintaining the best features customers want,” Barra said.
GM this year said it was targeting $2 billion in cost reductions over the next two years. Barra said on the call that the automaker has identified another $1 billion in fixed cost cuts through 2024, which will offset the impact of $1 billion in depreciation and amortization to lower net automotive fixed costs by $2 billion by the end of 2024.
About 5,000 salaried employees this year chose to take a voluntary buyout, which accounts for about $1 billion in cost reductions and also prevented layoffs, GM said at the time. The company also aims to cut sales and marketing spending by $800 million, Barra said, with “the remainder coming from significant reduction in all areas of the business, including engineering expense, travel and administrative costs.”
The Detroit News and the Detroit Free Press reported the news on Friday.