Detroit automaker General Motors (GM) has announced that it is cutting 1,750 jobs at its U.S. manufacturing plants.
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The latest job cuts are taking place at General Motors’ plants located in its home state of Michigan as well as in Ohio and Tennessee. Management at the company cited ongoing challenges related to the manufacturing and sales of electric vehicles (EVs) as the reason for the job cuts.
The job cuts in the manufacturing plants come days after General Motors announced that it is eliminating 200 salaried workers among its corporate ranks. Management said the corporate job cuts are needed as the Detroit automaker reduces costs and boosts profitability.
Growing Wave of Job Cuts
General Motors isn’t the only major U.S. company to announce job cuts recently. Amazon (AMZN) just announced that it is reducing its headcount by 14,000 positions, and United Parcel Service (UPS) has said that it plans to eliminate 48,000 jobs due to a difficult operating environment.
In General Motors’ case, the automaker said that it is laying off 1,200 workers at its Detroit electric vehicle plant and 550 staff at its Ohio Ultium battery cell plant. An additional 700 temporary layoffs will occur at the company’s Ultium cell plant in Tennessee.
“In response to slower near-term EV adoption and an evolving regulatory environment, General Motors is realigning EV capacity,” the company said in a written statement.
Is GM Stock a Buy?
The stock of General Motors has a consensus Moderate Buy rating among 18 Wall Street analysts. That rating is based on 14 Buy, two Hold, and two Sell recommendations issued in the last three months. The average GM price target of $72.72 implies 4.14% upside from current levels.
