General Motors to Cut Hundreds of White Collar Workers in IT Overhaul

The reductions will affect about 500 to 600 employees, according to people familiar with the matter. Management began notifying affected workers Monday morning, said the people, who asked to not be identified discussing the private matter.

GM confirmed it was eliminating some jobs in response to inquiries from Bloomberg News. The reductions stem from an effort to transform its information technology department to better position the company for the future, GM said in a statement.

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The carmaker's shares fell 3.9% at 12:27 p.m. in New York on Monday. The stock has retreated after reaching an all time high earlier this year, falling about 3.1% through Friday's close compared with the S&P 500 Index's 8.1% advance.

The cuts will affect GM's offices globally as the automaker works to boost earnings even as US sales stagnated to start the year. GM in October trimmed hundreds of salaried workers, in addition to thousands of blue collar staff who were laid off as GM's investments in electric vehicles went sour.

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The automaker has also been working to transform its own operations in IT development, adding more computing and software capabilities to its cars and using artificial intelligence in more of its operations.

At the same time, GM has had to push for internal discipline as the company tries to grow profits with the Iran war stoking inflation. The company has also made broad cutbacks in its electric vehicle operations in response to a slowdown in demand. GM has taken a total of $8.7 billion in writedowns tied to its EV business.