General Motors Company (NYSE:GM) has reportedly laid off 1,000 employees as part of its plan to reduce costs by $2 billion by the end of 2024. This follows earlier layoffs in its software and services division and voluntary buyouts in 2023, which affected 5,000 employees according to The Wall Street Journal.
The company cited the need to optimize operations and focus on priorities. Other automakers, including Ford Inc. (NYSE:F) and Volkswagen Inc., are also cutting costs due to weak global markets and high EV development expenses.
GM continues to expand its EV lineup but expects these vehicles to remain unprofitable in 2025. Gas-powered trucks and SUVs remain the company's most profitable segment, driving better-than-expected third-quarter results last month.
What Else: Cruise, GM's autonomous vehicle division, also admitted to falsifying an accident report to the National Highway Traffic Safety Administration. The report failed to disclose full details of an Oct. 2023 crash in San Francisco where a Cruise robotaxi dragged a pedestrian 20 feet after the individual was hit by another vehicle.
Cruise will pay a $500,000 fine, create a Safety Compliance Program and submit annual reports to avoid further penalties. The company halted U.S. operations after the incident but resumed manual driving in Phoenix, Houston and Dallas earlier this year. It plans to return to driverless operations by year-end, according to GM CEO Mary Barra.
GM Price Action: General Motors shares were down 1% at $57.05 at the time of writing, according to Benzinga Pro.
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