Detroit automaker General Motors has announced on Friday that it is laying off 200 employees at its global tech center, in Michigan.
Automotive News, which cited internal sources, reported that the message was delivered to the staff in an online meeting.
The company explained that the firings were due to “business conditions” and not performance-related.
The job cuts affected mostly engineers who worked in primarily Computer-Aided Design, or CAD.
“We’re restructuring our design engineering team to strengthen our core architectural design engineering capabilities,” the company wrote in an email, obtained by CNBC.
“As a result, a number of CAD execution roles have been eliminated,” GM said. “We recognize the efforts and accomplishments of the impacted team members, and we thank them for their contributions.”
The layoff happens just two days after GM reported better-than-expected financial results for the third quarter, which led the company to raise its guidance for the full year 2025.
GM expects adjusted EBIT of between $12-13 billion (up from $10-12.5) and $9.75-10.50 adjusted EPS (up from $8.25-10).
However, the net income, which represents the profit left after all expenses are deducted from the revenue, had its margin slashed in half compared to a year ago — from 6.3% to 2.7%.
Last week, GM warned that its third quarter financial results had been impacted by a $1.6 billion loss from its EV strategy change.
In a new update at its third quarter earnings call, the Detroit automaker said on it is also shutting down production of the BrightDrop electric delivery van.
Manufacturing operations in the Canadian assembly plant had already been suspended since May, with GM citing demand. By then, 500 people were laid off.
The impact of the decision has not been reflected in the third quarter financial results, with the company stating that its “actions on BrightDrop and our ongoing work to reset our capacity will cause us to recognize a charge in the fourth quarter.”
A year ago, General Motors cut about 1,000 jobs, most of them in the US, amid cost reduction efforts.
It had been its third workforce reduction in four months, following layoffs of over 1,000 employees in its software department and approximately 1,700 workers in September at a manufacturing plant in Kansas.
On Thursday, the Wall Street Journal reported that US EV maker Rivian is laying off 600 employees, marking the fifth layoff in less than two years.
The news came just a month after the company confirmed it was cutting jobs affecting about 1.5% of its workforce.
