General Motors Hiring Internally to Drive Profits
General Motors (NYSE: GM) has plans in motion to hire thousands of information technology workers through 2017. According to The Detroit News, the company will be racking up employment numbers in an effort to head up a major information technology transformation that will inevitably increase profits and market share.
While new faces will surely be brought in throughout the five-year alteration, General Motors may flip internal IT contractor hires by simply switching their job title. Regardless of where they come from, General Motors' new IT employees will be integrated with the purpose of creating and evolving business solutions rather than just supporting the automaker from outside the company.
At a time when the vehicle distributor seemed unlikely to take on increased costs, General Motors' Vice President of Information Technology gave insight as to why hiring thousands of more IT workers would be beneficial for the company overall. Randy Mott noted that flipping information technology jobs internally rather than allowing matters to be handled by workers outside the company will eventually cut costs.
Keeping costs down will likely be something General Motors must consider, as the company has been in talks recently to reinstate their Facebook (NASDAQ: FB) advertisements, thus adding another large annual cost to their budget.
Future plans for the company are not set in stone. However, General Motors will strive to reduce data centers from 23 (worldwide) to two (to be based in Michigan).
"We want to simplify the environment that we run in so it takes less effort to do that and at the same time drive more capability to our business," Mott told The Detroit News.
General Motors has been proving that its auto business is a more-than-capable contender in the industry as of late. The popular automaker and its arguably main competitor Ford (NYSE: F) have both been beating sales forecasts throughout the past few months, with Jefferies & Company claiming that the American car buyer is still alive and well.
As things continue to look up for the auto-industry, General Motors will work to revamp and add to its staff. The company is said to be seeking out recent college graduates for its new positions that will eventually staff three software development centers throughout the U.S.
General Motors closed yesterday at $19.33, down about 4.6 percent year-to-date.
Latest Ratings for GM
|Jan 2017||Daiwa Capital||Downgrades||Neutral||Underperform|
|Dec 2016||BMO Capital||Initiates Coverage On||Market Perform|
|Dec 2016||Macquarie||Initiates Coverage On||Outperform|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.