General Motors lays off hundreds of engineers on Microsoft Teams; says: It's not your performance, it's…

General Motors has laid off more than 200 salaried employees, primarily Computer-Aided Design (CAD) engineers, as part of its ongoing restructuring efforts to boost profitability. The cuts, which took place 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.

The affected employees were notified via Microsoft Teams calls Friday morning that their positions were being eliminated due to "business conditions" rather than performance issues, according to company sources. GM confirmed the layoffs were part of a broader reorganisation of its design engineering division.

General Motors say restructuring aims to strengthen core design capabilities

"We're restructuring our design engineering team to strengthen our core architectural design engineering capabilities," GM stated. "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 first reported the layoffs, which represent a continuation of GM's white-collar workforce reductions. The automaker's US salaried headcount has decreased from 53,000 in 2023 to 50,000 by the end of last year as the company regularly reviews its operations to eliminate positions deemed unnecessary for future operations.

Layoffs follow GM's strong earnings performance

The timing of the cuts is notable, occurring just three days after GM posted robust third-quarter results that sent its stock surging 15%—the company's second-best single-day performance since emerging from bankruptcy in 2009. GM shares have climbed more than 29% this year, hitting new 52-week highs.
The automaker also raised its profit outlook, citing reduced tariff pressure and diminished electric vehicle losses. However, GM 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 isn't alone in downsizing. Electric vehicle maker Rivian announced last week that it would cut roughly 600 jobs—4.5% of its workforce—as the automotive industry grapples with policy changes and slower-than-expected EV demand following the expiration of the $7,500 federal EV tax credit.