General Motors is telling roughly 1,000 workers to go home. The company purportedly made the decision to reduce staff, mostly office workers, as it looks to cut costs, increase efficiency, and adjust to evolving market conditions.

According to CNBC, most of the layoffs will reportedly be at GM’s technical center in Warren, Michigan. In addition, the company is shutting several departments at its Milford Proving Grounds in Michigan as well as its Yuma Desert Proving Grounds in Arizona.

“We need to optimize for speed and excellence,” a GM statement noted. “This includes operating with efficiency, ensuring we have the right team structure, and focusing on our top priorities as a business.”

One of GM’s priorities is likely cutting costs as it confronts slowing sales and a loss of market share in China. Plus, GM has been trying to effectively balance the production of both electric vehicles and gas-powered cars. However, consumer demand for EVs has been weaker than anticipated, which leads to uncertainty for automakers trying to decide where best to invest development dollars.

GM Job Cuts in 2024

The recent GM layoff announcement is the second round in recent months. In August, the automaker’s software division saw nearly 1,000 other jobs eliminated.  Prior to the staff reduction, the head of the GM’s software unit, Mike Abbot, unexpectedly stepped down.

According to an anonymous source who spoke to the Detroit Free Press, no more job cuts are expected this year. However, management still has the option to make changes depending on needs and project priorities.

Earlier this year, GM offered buyouts to office staff who had been with the company for at least five years. About 5,000 workers took the deal and left the company. GM made the move in an attempt to avoid future layoffs.

Globally, GM employs about 163,000 people. Salaried white-collar office workers numbered around 76,000 as of the end of 2023. GM has yet to say exactly how many workers will lose their jobs.