Copyright newskarnataka
General Motors (GM) has laid off more than 200 salaried employees, primarily Computer-Aided Design (CAD) engineers, as part of its latest restructuring move aimed at strengthening profitability and streamlining operations. The layoffs, which took place on Friday at the company’s global technical campus in Warren, Michigan, were part of a larger reorganisation within its design engineering division. Layoffs part of ongoing reorganisation The affected employees were informed on Friday morning via Microsoft Teams calls that their roles were being eliminated due to “business conditions” rather than performance issues, according to company insiders. GM confirmed that the decision is part of a strategic overhaul intended to focus resources on core design and engineering capabilities. “We’re restructuring our design engineering team to strengthen our core architectural design engineering capabilities,” the company said in a statement. “As a result, a number of CAD execution roles have been eliminated. We recognise the efforts and accomplishments of the impacted team members and thank them for their contributions.” The layoffs were first reported by Bloomberg and mark a continuation of GM’s workforce optimisation efforts. The automaker’s US salaried headcount has declined from 53,000 in 2023 to around 50,000 by the end of last year, reflecting a steady review of operational efficiency and future priorities. Timing follows strong earnings report The job cuts come just days after GM reported strong third-quarter results, which led to a 15% surge in its stock price — the company’s second-best single-day performance since emerging from bankruptcy in 2009. The automaker also raised its 2025 financial guidance, citing robust performance across key segments and reduced tariff pressure. GM shares have risen more than 29% this year, reaching new 52-week highs. The company attributed its improved outlook to better cost management, lower EV-related losses, and easing global supply chain challenges. However, it continues to face significant headwinds, including $1.1 billion in profit cuts due to tariffs and $1.6 billion in costs from scaling back its electric vehicle (EV) initiatives. Restructuring to enhance long-term competitiveness Industry experts suggest that GM’s decision to streamline its design operations reflects a broader trend among legacy automakers adapting to rapid technological change. With increasing competition in the electric mobility sector and shifting global policies, GM aims to focus on innovation-driven roles while reducing functions that may overlap or have limited future relevance. The restructuring aligns with CEO Mary Barra’s broader strategy to balance investments between EV development, autonomous technology, and the company’s traditional internal combustion business. GM has already slowed down some of its EV production plans to align with current demand and regulatory uncertainty. Industry-wide trend of workforce reduction GM’s layoffs follow a growing wave of job cuts across the automotive and tech industries. On Thursday, electric vehicle startup Rivian announced that it would reduce its workforce by approximately 600 employees — or 4.5% — as it recalibrates production in response to waning EV demand after the expiry of the US federal $7,500 EV tax credit. Analysts note that as automakers navigate high production costs, shifting consumer sentiment, and fluctuating government incentives, many are rethinking their staffing and capital allocation strategies. For GM, the latest round of layoffs underscores its determination to maintain profitability while positioning itself for the next phase of the automotive transition. Looking ahead Despite the layoffs, GM remains optimistic about its long-term trajectory. The automaker plans to continue investing in advanced design systems, digital manufacturing, and next-generation vehicle platforms. By reducing non-core positions and reinforcing essential design functions, the company aims to enhance agility and sustain growth in a rapidly evolving industry.
