GM Closes Arizona IT Center, Almost 1,000 People Are Left Without Jobs

General Motors continues the job cutting campaign. The organization has just announced that it will close its Arizona IT Innovation Center. Almost 1,000 people are affected by the move.
The GM Arizona IT Center will be closed before the end of the year 6 photos
Photo: General Motors
The GM Arizona IT Center will be closed before the end of the yearThe GM Arizona IT Center will be closed before the end of the yearThe GM Arizona IT Center will be closed before the end of the yearThe GM Arizona IT Center will be closed before the end of the yearGM's CEO, Mary Barra
The Arizona IT Innovation Center in Chandler, Arizona, has been active since 2014. Now it is set to close before the end of the year. The center covers 17,000 square-feet of land. 1,029 employees, excluding GM Financial and Cruise, work there. 936 of them are to be affected by the job cuts, according to a Worker Adjustment and Retaining Notification forwarded to the state of Arizona, that GM filed on August 23. The employees who are losing their jobs have already received notice from the company that their positions have been eliminated.

The General Motors representatives state that they will have an opportunity to apply to other openings within the company, which is also expected to offer outplacement support. But the deadline is October 2023, so they do not have that much time left. Employees with at least one year with the company will be eligible for a severance package, Detroit Free Press writes.

The move is part of the organization’s strategy to reduce costs, originally targeting a $2 billion reduction in two years. But now they are pushing things further, attempting to reach $3 billion in cost reductions through 2024, and reducing salaried workforce headcount, as well as simplifying the lineup are two of the key objectives. So are cutting spending in sales and marketing, as well as administrative and travel costs.

It all started with a voluntary separation program at the beggining of 2023. The plan offered certain employees the opportunity to receive pay, health coverage, and several other benefits for a limited amount of time in exchange for voluntarily leaving the company. 5,000 employees reportedly took the offer back then.

In May, the company made a public announcement stating that several hundred full-time contracts have been terminated. That is also when the engineering hub in suburban Detroit and the company’s Warren Tech Center were closed.

Last week, the executives announced that 200 engineering jobs are to be cut as well.

GM claims that this way, they will better align the IT division and resources in the US and continue the transformation that the company began. General Motors operates three additional IT centers in the country. They are located in Atlanta, Georgia, Austin, Texas, and Warren, Michigan, so they considered the one in Chandler, Arizona, as being redundant.

General Motors recently announced their plans to simplify the manufacturing process, eliminating several trims and packages, witht the models in the lineup sharing more components than ever before. The company’s CEO Mary Barra refers to the plan that she announced during the second-quarter earnings report as 'winning with simplicity.'
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