General Motors has laid off hundreds of full-time contract jobs, mostly in Detroit, as it strives to cut costs following massive buyouts.
The contract workers, who were from its large product-development operation, were dismissed over the weekend.Â
A spokeswoman said hundreds lost their jobs but failed to specify the exact number.
Read More: 5,000 General Motors staff to leave after accepting buyouts
The cuts were from its product-development unit, which employs around 20,000 engineers, designers, and other salaried staff who develop future vehicle models.Â
The contractor layoffs were reported earlier by the Detroit Free Press.
GM said last month around 5,000 corporate US employees and some executives working in global functions had opted for a voluntary buyout.
The automaker took a first-quarter charge to pay most of the $1 billion buyout cost.
In March, it also axed more than 500 salaried workers.
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GM’s business continued to thrive amidst growing economic concerns like inflationary pressures and higher interest rates, which have historically hampered demand for new vehicles.
Last week, the firm raised its full-year 2023 earnings guidance, citing strong vehicle demand and customers willing to pay more for higher-end models and features.
Despite its impressive performance, GM executives have said they are taking precautions against worsening economic and auto market conditions.Â
In January, the business announced a target to slash $2 billion in annualized spending by the end of 2023.
