General Motors announced the cessation of IT operations in Arizona, laying off 940 employees.
General Motors announced on Wednesday that it will cut 940 IT positions in Arizona and discontinue its IT operations in the state to streamline operations and reduce costs.
According to Dolphin Research APP, General Motors (GM.US) announced on Wednesday that it will cut 940 IT positions in Arizona and discontinue its IT operations in the state in order to streamline operations and reduce costs.
Stacy Lynett, Vice President of Information and Digital Technology at General Motors, stated that employees who lose their jobs can apply for other positions within the company, and the company will provide support for reemployment. Employees who have worked for the company for at least one year will be eligible for severance pay.
Lynett also pointed out that General Motors will develop a plan to transfer some of the work from the Arizona IT center to other centers.
In April, General Motors announced that approximately 5,000 salaried employees had accepted buyout agreements and left the company as part of its plan to reduce costs by $2 billion this year.
The company stated that approximately 80 to 90 employees engaged in automotive software work will continue to be retained as it integrates its IT operations in Michigan, Georgia, and Texas.
According to General Motors' website, the Arizona center opened in 2014 to support the company's IT needs, including network technology, end-user applications, dealer and plant systems, and automotive technology.