General Motors Co. laid off more than 200 salaried employees on Friday, mostly at its Tech Center in Warren, Michigan, according to Bloomberg.
The cuts, announced around 7 a.m. via a Slack message, were attributed to “business conditions” rather than performance, according to people familiar with the meeting.
A GM spokesperson said the move targeted overlapping roles in design engineering, explaining, “We’re restructuring our design engineering team to strengthen our core architectural design engineering capabilities. 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.”
Bloomberg writes that the job reductions are part of a broader effort to streamline operations and boost profitability amid tariffs and slower electric-vehicle sales. Earlier in the week, GM reported stronger-than-expected third-quarter earnings, driven by robust sales of high-margin trucks and SUVs.
Recall, just days ago, the automaker delivered stronger-than-expected third-quarter results and raised its 2025 outlook. The company reported adjusted EPS of $2.80 versus $2.31 expected and revenue of $48.59 billion versus $45.27 billion.
CEO Mary Barra said at the time: “Thanks to the collective efforts of our team, and our compelling vehicle portfolio, GM delivered another very good quarter of earnings and free cash flow… we are raising our full-year guidance, underscoring our confidence in the company’s trajectory.”
GM now expects $12–$13 billion in adjusted EBIT and $9.75–$10.50 in adjusted EPS for the year, both above prior forecasts. The company also lowered its expected tariff impact to between $3.5 billion and $4.5 billion, down from $4–$5 billion previously.
Barra thanked President Trump for “the important tariff updates” announced last week, which included new levies on imported trucks and parts as well as an offset for U.S.-made vehicles.
Despite EV-related headwinds—only about 40% of GM’s electric models are profitable on a production basis—CFO Paul Jacobson reaffirmed the company’s long-term commitment to electrification, saying, “We continue to believe there is a strong future for electric vehicles.” Gains in China, international markets, and GM Financial helped offset weaker North American margins, as GM focuses on restoring its regional profitability to the 8–10% range.
GM’s stronger outlook also reflects booming demand for its high-margin pickups and SUVs, which delivered the company’s best year-to-date truck and Escalade sales since 2018 and 2007, respectively, and record results for the GMC brand, according to Bloomberg. CEO Mary Barra highlighted that GM is “very well positioned as we invest to increase our already significant domestic sourcing and manufacturing footprint,” thanking President Trump for extending tariff discounts through 2030.
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