Additional Coverage:
GM Lays Off Hundreds After Stock Soars, Citing “Business Conditions”
Detroit, MI – General Motors delivered a somber blow to hundreds of employees on Friday, terminating a significant number of jobs in a cost-cutting measure that comes just days after the automaker’s stock value experienced a notable surge.
Over 200 salaried, largely white-collar positions were eliminated, with the majority of the impacted workers based at GM’s technical center in Warren, Michigan. Employees received the unwelcome news around 7 a.m. EDT via Slack, with the company emphasizing that the layoffs were not performance-related but rather a result of “business conditions.”
In an official statement, General Motors indicated it was “restructuring” its design engineering team. The company stated its intention to “strengthen our core architectural design engineering capabilities,” primarily by reducing roles in computer-aided design (CAD).
“As a result, a number of CAD execution roles have been eliminated,” GM officials confirmed to Bloomberg. “We recognize the efforts and accomplishments of the impacted team members, and we thank them for their contributions.”
The layoffs follow a week where GM reported stronger-than-expected third-quarter earnings, a positive financial indicator that preceded Friday’s job cuts.
This move by GM reflects a broader trend among major corporations, including other automotive giants, to enhance profit margins through streamlining operations and integrating AI-driven efficiencies. These efforts are unfolding as businesses navigate an economy impacted by inconsistent tariff policies and a shifting stance on pro-electric vehicle incentives.
Both Ford and GM were among numerous U.S. companies that contributed $1 million each, along with vehicles, to President Donald Trump’s second inauguration in January. On Friday, President Trump claimed on social media that the improved earnings performance by GM and Ford were indicative of the effectiveness of his tariff policies, stating the two carmakers were “up big.”