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The headquarters of the American automobile company General Motors (GM) is in Detroit, Michigan.
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Detroit – GM It laid off more than 200 paid employees on Friday, as the automaker continues to reevaluate its business and cut costs to boost profits.
The affected employees were largely computer-aided design, or CAD, engineers who worked at the company’s global technology campus in metro Detroit, according to GM.
“We are restructuring our design engineering team to enhance our core architectural design engineering capabilities,” GM said in an email statement. “As a result, a number of CAD implementation roles have been eliminated. We appreciate the efforts and accomplishments of the affected team members, and thank them for their contributions.”
General Motors declined to comment on the number of employees affected, but a source familiar with the matter confirmed to CNBC that more than 200 employees, which was first reported by Bloomberg News. The person spoke anonymously because the number has not yet been announced.
Employees were told their roles were being eliminated because of “working conditions” and not because of their performance Microsoft The source said that the teams are calling on Friday.
The Detroit automaker has been regularly reviewing its business units and organizations for years in an effort to cut costs, increase profits and eliminate what it views as unnecessary or overstaffed roles for future operations.
The latest layoffs represent a small percentage of the automaker’s paid workforce, but continue a trend of reducing the number of white-collar employees in the United States. The number of salaried employees at General Motors in the United States fell from 53,000 in 2023 to 50,000 as of the end of last year.
GM’s layoffs also come a day after the all-electric car maker Rivian The company has laid off approximately 4.5% of its workforce, or more than 600 people, to restructure some teams as the electric vehicle market faces increasing challenges amid policy changes and slower-than-expected demand.
The latest cuts come as President Donald Trump touted it on social media on Friday ford motor GM “UP BIG on tariffs” amid tariff changes last week for heavy-duty and medium-duty trucks, which it referred to as “large- and medium-duty trucks.”
While both Ford and General Motors, including CEO Mary Barra, this week applauded the tariff changes, which also included extending offsets on U.S.-produced vehicles, the automakers are still seeing additional cost burdens from the tariffs. These changes simply help reduce those additional costs.
The layoffs come days after GM raised its 2025 financial guidance on Tuesday as it beat Wall Street’s third-quarter earnings expectations, causing the stock to have its second-best day on the market since emerging from bankruptcy in 2009.
GM shares are up more than 29% this year, while Ford shares are up nearly 38%. Both hit 52-week highs on Friday.
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