General Motors to lay off 500 people, despite making a profit of 10,000 crores in 2022.

General Motors (GM) will eliminate 500 jobs a month after its managers assured that there would be no layoffs at the company and despite earnings of nearly $10,000 million in 2022. Newspapers News from Detroit said that the layoffs were announced this Tuesday internally by letter and that will affect paid workers (from administrative to engineers, commercialists and other types of specialists), and not to employees of assembly plants.

GM told the newspaper that the layoffs were part of the company’s cost-cutting strategy. The automaker has about 86,000 salaried employees and about 81,000 factory employees worldwide. In late January, as GM reported a net profit of $9.934 million in 2022, its chief financial officer, Paul Jacobson, said the company would cut about $2 billion in costs over the next two years.

But Jacobson added that GM is not planning any layoffs. The company’s CEO, Mary Barra, also assured that GM will not resort to job cuts and will limit itself to reducing hiring of new employees. CNBC noted that in a letter announcing the 500 layoffs, GM personnel director Arden Hoffman said that the $2,000 million reduction will be produced by reducing “corporate expenses, costs and complexity” of their products.

Hoffman insisted that layoffs are decided through performance appraisals.

On February 14, Ford announced 3,800 job cuts in Europe, 11% of its workforce in the region, after losing $2,152 million in 2022.