GM Cuts 1,000 Jobs, Scales Back Testing at Milford Proving Grounds

GM laid off approximately 1,000 employees last Friday, the company confirmed to Motor1. To put an extra dose of sour into the situation, employees were reportedly notified through early morning emails. According to the Detroit Free Press, the layoffs affected both salaried and hourly employees.

A GM representative provided the following statement to Motor1.

“In order to win in this competitive market, we need to optimize for speed and excellence. This includes operating with efficiency, ensuring we have the right team structure, and focusing on our top priorities as a business.”

It’s unclear if the layoffs targeted specific departments within the company. The Detroit Free Press reports at least one layoff affected a former employee with decades of experience and a long-standing record of success. Some of the layoffs affected hourly UAW employees, prompting UAW Vice President Mike Booth to vow a fight to restore those positions.

“GM is trying to cut around 50 UAW jobs, when they’re making record profits,” he said, according to the Detroit Free Press.

Some of the job losses come from GM’s decision to end operations at its Yuma, Arizona proving grounds, used for desert and hot-weather testing. This news comes not long after Stellantis announced the closure of its Arizona facility used largely by GM’s crosstown rival, Fiat-Chrysler Automobiles. Additionally, GM is closing down the Durability, Corrosion, and Teardown facilities at its sprawling Milford Proving Grounds complex northeast of Detroit. Instead of absorbing those tests elsewhere in the company, the automaker will turn responsibility over to suppliers to ensure components meet durability and corrosion requirements.

The new round of layoffs comes amid slowing demand for new vehicles, especially EVs, where GM has heavy investments. The automaker previously let approximately 1,500 employees go in August, a good portion of which were tied to the GM technical center in Warren.