Automakers & Tech Companies: Similar Workforce Reductions, Different Reasons

Last week, GM announced that it was offering buyout packages to the majority of its salaried employees, and earlier this week, Meta - parent company to Facebook - announced yet another round of layoffs thereby reducing its workforce by 10 thousand more employees.

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Despite the outward appearance that these are similar events happening around the same time, however, a piece in Business Insider notes some significant differences between these situations, with Meta claiming to have overhired and that they intend to spend the year targeting efficiency improvements. GM, on the other hand, is in the process of transitioning from their traditional business model to one that emphasizes electric vehicle production, which will result in both the elimination of many old jobs as well as the creation of many new ones.

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You can read more of this analysis here.