General Motors on Tuesday said it will make $2 billion in cost cuts over the next two years, partly by reducing the size of its work force, though it’s not planning any layoffs.
It announced the plan after posting fourth-quarter net income of $2 billion — a 15 percent increase, and a record pretax profit for the year as vehicle sales and supply constraints improved.
The automaker also said in a statement Tuesday it expects to generate similar or slightly lower earnings in 2023. To achieve that, it intends to cut costs in its automotive business by $2 billion through 2024, with 30 to 50 percent of that expected this year, CFO Paul Jacobson told reporters.
In the fourth quarter, GM said revenue surged 28 percent to $43.1 billion. Adjusted earnings before interest and taxes in the quarter rose 34 percent to $3.8 billion.