- Employees were informed of the job cuts last week in a Slack channel.
- Job losses mainly affected GM’s design engineering and CAD teams.
- GM reports its strongest US market share since 2015, hitting 17.2 %.
General Motors has announced that more than 200 employees have been laid off from its Warren Technical Center, even as the automaker reports a stronger third quarter than many analysts expected.
It’s understood that the job cuts are part of a broader effort to streamline operations and bolster profits. Several affected employees reportedly learned of the decision through a Slack channel, where GM explained that the layoffs stemmed from “business conditions,” rather than individual performance.
Reducing White-Collar Staff
Speaking with Bloomberg, GM said it had reviewed its white-collar workforce to identify overlapping roles and refine its workflow. Much of the reduction, according to the company, centered on design engineering teams.
Read: GM Pulls Off Its Strongest US Comeback In A Decade But One Brand Is Slipping
“We’re restructuring our design engineering team to strengthen our core architectural design engineering capabilities,” GM confirmed.
“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.”
How Strong Is GM’s 2025 Outlook?
The timing of the layoffs coincides with a period of renewed momentum. Through the first nine months of this year, GM sold 2.2 million vehicles in the United States, a 10 percent increase compared with the same period in 2024.
That performance gives the company a 17.2 percent share of the US new-car market, its strongest position since 2015.
More: EV Sales To Collapse 60% In October, J.D. Power Forecasts
Electric vehicle sales are also accelerating, up 105 percent year-to-date to 144,688 units, though that pace is expected to slow sharply through the remainder of the year after the Trump administration ended the $7,500 federal EV tax credit at the end of September.
In response to strong sales, GM has increased its automotive operating cash flow guidance for 2025 to $19.2 billion to $21.2 billion, up from an estimated $17 billion to $20.5 billion.
“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,” GM chief executive Mary Barra said.
“In the U.S., we achieved our highest third-quarter market share since 2017 with strong margins, and our restructured China business was profitable once again. Based on our performance, we are raising our full-year guidance, underscoring our confidence in the company’s trajectory,” she added.
