General Motors to cut jobs in their engineering operations

General Motors to cut jobs in their engineering operations

World’s largest automotive giants General Motors is expected to soon announce job cuts in their U.S. engineering operations. This news was reported by Detroit Free Press and comes a day after GM announced it would offer sweeping buyouts to all hourly workers in a bid to cut its payroll and pension costs.

The news report also mentioned the fact that GM would also announce engineering job cuts in Europe. However, GM has reportedly denied any such plans. General Motors Europe said in a statement: “We went through our restructuring last year. We continue to build momentum and improve our productivity, even within the engineering organization. There is no new program (to cut jobs), and any comments to the contrary are misrepresentative of the reality.”

However, GM Europe is already involved in a restructuring process, which involves cutting headcount by nearly a fifth to restore profits in a region. GM last made profits in their European market back in 1999.

Detroit Free Press quoted a GM executive as saying: “There will be a right-sizing of the U.S. and European vehicle engineering groups. Where there’s duplication of engineering among North America, Europe, and South America, you can eliminate it and reduce the number of people involved.”