GM to cut 940 jobs, cease IT operations in Arizona

FILE PHOTO: Logo of GM atop the company headquarters

By David Shepardson

(Reuters) - General Motors said on Wednesday it will cut 940 information technology jobs in Arizona and cease IT operations in the state as it works to streamline functions and reduce costs.

GM, which cut a few hundred jobsin February, said in April about 5,000 salaried workers had taken buyouts to leave the automaker after it announced plans to cut costs by $2 billion by the end of 2024. In July, the company said it would cut another $1 billion in fixed costs over the same timeframe.

GM said around 80 to 90 employees working in software defined vehicle teams will remain in Arizona as it consolidates IT operations at its Michigan, Georgia and Texas facilities.

GM opened its 170,000-square foot (15,800 square meter) Arizona IT Innovation Center in 2014 in Chandler. It may keep some space to house its remaining employees. GM said impacted IT employees can apply for open positions in other states.

Separately, GM confirmed is cutting 200 engineering positions but said the vast majority of impacted workers will be redeployed into new engineering positions as it works "to rebalance our engineering resources to better align with our growth strategy."

GM CEO Mary Barra said last month automotive fixed costs will be down $2 billion on a net basis as it exits 2024, including about $1 billion from the voluntary separation program, another $800 million in reduced sales and marketing expenses.

The remainder is "coming from significant reduction in all areas of the business, including engineering expense, travel, and administrative costs. We're not done by any stretch."

GM shares closed up 1.9% to $33.56 but are down about 17% since mid-July.

(Reporting by David Shepardson; Editing by Chris Reese and Lincoln Feast)