General Motors Layoffs: US-Based Automobile Giant Reducing Its Workforce in China Amid Stiff Competition From Local Firms, Declining Sales

Detroit, August 14: General Motors has started laying off several employees in China due to facing lower sales and stiff competition. The US automobile giant aims to boost the profitability of EVs and premium vehicles. China is home to several electric vehicle companies that compete with international like Tesla and GM in pricing and specifications. Detroit-based General Motors is also planning to partner with SAIC and begin structural changes in China's operations.

According to a LiveMint report, GM layoffs have begun and are starting to affect several employees in China due to the business restructuring amid rising competition and declining sales. General Motors reportedly witnessed peak sales in 2017, and recognizing it would not return to that state, it has implemented this step. EV Safety Concerns: South Korean Carmakers Now Disclosing Brand Information of Batteries Used Their Electric Vehicles Over Customers’ Fear of Battery Catching Fire.

Amid the struggles, the automobile company has decided to focus more on electric vehicles and importing premium models. As a consequence, General Motors layoffs will follow and affect several employees working in China. The report said that reductions in factory capacity along with additional job cuts would be underway, as per the workers who are aware of this matter. 

The workers further said that GM job cuts were still going on, and the company did not publicly disclose any further plans. The company announced in its recent filing that automobile companies prefer to gain market share over increasing profitability, making it difficult to maintain sales volume. General Motors said it would work with the local companies to overhaul its Chinese operations. This could result in an increased likelihood of recording future changes if the company keeps losing. Ola Electric IPO: Bhavish Aggarwal Highlights Team’s Journey, Celebrates on Milestone Moment.

The report mentioned that the US-based automobile company had been trying to initiate a shakeup for its business in China for months. GM CFO (Chief Finance Officer) Paul Jacobson said the company would have to remain competitive and restore profitability.