Owing to its ongoing restructuring efforts to boost profitability, General Motors has recently laid off more than 200 salaried employees, primarily Computer-Aided Design (CAD) engineers.
General Motors Announcing Layoffs Calling It Business Conditions
These cuts, which took place on Friday at the company’s global tech campus in Warren, Michigan, come just days after the Detroit automaker raised its 2025 financial guidance following strong third-quarter earnings.
Moving ahead, the company has notified the affected employees via Microsoft Teams calls Friday morning that their positions were being eliminated due to “business conditions” rather than performance issues as informed by the sources.
The layoffs were part of a broader reorganisation of its design engineering division according to General Motors.
Further adding, “Restructuring aims to strengthen core design capabilities and We’re restructuring our design engineering team to strengthen our core architectural design engineering capabilities.”
General Motors said, “As a result, a number of CAD execution roles have been eliminated. We recognize the efforts and accomplishments of the impacted team members, and we thank them for their contributions.”
Regularly Reviews Eliminating Positions Deemed Unnecessary
These layoffs represent a continuation of GM’s white-collar workforce reductions.
This is not the first time as the automaker’s US salaried headcount has decreased from 53,000 in 2023 to 50,000 by the end of last year.
It appears that the company regularly reviews its operations to eliminate positions deemed unnecessary for future operations.
Interestingly, the timing of these layoffs is impeccable as it is occurring just three days after GM posted robust third-quarter results that sent its stock surging 15%.
This is accounted as the company’s second-best single-day performance since emerging from bankruptcy in 2009.
This year it is quite better as GM shares have climbed more than 29% this year, hitting new 52-week highs.
In addition to this the automaker also raised its profit outlook, citing reduced tariff pressure and diminished electric vehicle losses.
Every thing was not that smooth as the company has faced significant challenges, including $1.1 billion in tariff-related profit cuts and $1.6 billion in charges from scaling back its EV plans.
GM is not the only company who is downsizing as the Electric vehicle maker Rivian announced last week that it would cut roughly 600 jobs—4.5% of its workforce.
It appears that the automotive industry grapples with policy changes and slower-than-expected EV demand following the expiration of the $7,500 federal EV tax credit.
