GM is looking at layoffs among its corporate workers, switching gears to cut costs and improve its profit margins. As per emerging reports, GM’s engineers are at the center of the job cuts, with members of the Computer-Aided Design (CAD) team operating out of the organization’s global tech campus in Detroit. GM is the latest business to add to the rising number of auto industry layoffs, adjusting its workforce to ensure it can keep up with shifting market conditions and improve its “business conditions.”
From Target’s layoffs in the retail industry to Meta’s job cuts in the tech world, we’ve witnessed a wide range of cuts this week that have employees nervous about the evolving landscape of work in 2025. With GM’s corporate layoffs added to the mix, matters only grow more complex.
GM’s corporate layoffs are expected to hit design engineering roles as part of changing “business conditions” and not performance shortcomings. (Image: Pexels)
GM’s Corporate Layoffs Come As Part of Necessary Restructuring
General Motors, the Detroit-based automaker, has begun reviewing its business operations and identified necessary changes to improve its overall state of affairs. While the company did not confirm the scale of the layoffs, reports indicate that they were in the “low hundreds.” A source informed Bloomberg News that around 200 GM engineer jobs are facing cuts this time.
Employees affected by GM’s layoffs plan for 2025 were reassured that the cuts were being executed for changing “business conditions” and not due to any shortcomings in their ability and performance. The update came despite a strong third-quarter earnings report, which sent stocks surging 15%, marking the biggest single-day gain for the company since 2020.
“We’re restructuring our design engineering team to strengthen our core architectural design engineering capabilities,” GM told CNBC. “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.”
Auto Industry Layoffs Spike as GM Joins Its Competitors
GM’s corporate layoffs are another sign of the global effort to streamline operations and eliminate redundancies within desk roles, shifting attention away from downsizing service and production workers. Within the auto industry alone, multiple organizations have turned to layoffs, the matter of particular note due to the US tariffs that have instigated them. Earlier this year, GM indicated that the tariffs were responsible for cutting around $1.1 billion from its profits.
The auto industry layoffs have also been spurred on by businesses stepping away from their EV investments. Aligned with early predictions, the layoffs in the auto industry haven’t solely occurred in the US, but even outside of it, with businesses like Ford also turning to cuts in Germany. More recently, EV automaker Rivian also announced massive layoffs, with 600 workers or 4.5% of its staff on their way out.
Such major disruptions, not only elucidated by GM’s corporate job cuts and profit push, but also the changes in the industry at large, have left many employees nervous about the state of their employment. While scaling a business up or down is no small feat, employees are often left to keep up with the changes without much support or fanfare. This leaves them more stressed and anxious than before, and can inevitably affect their performance. While businesses get their production and distribution strategies in order, it’s doubly important to help workers set their sights in the right direction as well.
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