GM cuts hundreds of jobs at 69-year-old Midwest plant — days after stock soared on bumper earnings
America's biggest carmaker has laid off 200 staffers, days after reporting blockbuster earnings.
GM — which owns Chevrolet, GMC, Cadillac, and Buick — issued pink slips to 200 workers, largely at the automaker's technical center in Warren, Michigan.
The company uses the 69-year-old facility for its engineering, supply chain, AI, and technical development staff.
GM is the latest in a string of billion-dollar companies that's slashing white collar jobs in the US.
Impacted employees received a Slack message at 7 AM local time on Friday, saying the layoffs were needed to cope with 'business conditions,' Bloomberg reported.
But GM's sales this year have been through the roof. On Tuesday, the company posted an 8 percent sales increase compared to the same quarter last year, including a massive 105 percent surge in EV sales.
The company's stock price has risen more than 47 percent in the past six months, including a 3.4 percent boost by mid-day Friday.
The layoffs come after several major tech announcements from the company. On Wednesday, Mary Barra, the company's CEO, unveiled plans to launch 'eyes-off' self-driving and a new digital interface, likely by 2028.
GM confirmed to the Daily Mail that it has laid off 200 workers at a technical facility in Michigan
It's a big jump from the company's current highway driving system, called Super Cruise, that requires drivers to keep their eyes on the road at all times.
'Imagine you step into your vehicle, you push a button and it drives you to the office,' Barra said at a press event in Midtown Manhattan that the Daily Mail attended.
'You catch up on work, send emails, or watch an episode of your favorite show. The car drops you off, and it notices it's time for a brake inspection, so it heads to the dealership.
'Then it goes to get your dry cleaning, takeout for dinner, and it comes back in time so you can drive your kids to their soccer game.'
Later, in a separate interview, she added that GM was building its own digital interface and plans on cutting the cord with Apple CarPlay and Android Auto from all future vehicles.
When asked if GM shoppers should expect future cars to come without CarPlay, Barra told The Verge's Decoder podcast: 'As we get to a major rollout, I think that's the right expectation. Yes.'
The automaker has been building its own Google-based infotainment system, which has already replaced CarPlay in its EVs.
Models like the Chevy Equinox EV, Cadillac Lyriq, and GMC Hummer EV use built-in Google Maps and on-screen controls for climate, audio, and Wi-Fi connectivity.
GM unveiled plans to launch an eyes-off self-driving system that allows drivers to watch Netflix during their work commute by 2028. The new tech system will launch in the Cadillac Escalade IQ
GM's stock has recovered after massive falls in April when President Donald Trump unveiled massive automotive tariffs. The company was up 47 percent in the past six months by mid-day Friday
GM's CEO, Mary Barra, has led the company to massive sales increases, including another eight percent sales boost this quarter
Barra said the change will eventually extend to gas-powered vehicles as well, though there's no clear timeline for when that will happen.
GM tells the Daily Mail that Friday's layoffs were contained to one computer design team in the company and are not related to future sales.
'We’re restructuring our design engineering team to strengthen our core architectural design engineering capabilities,' a GM spokesperson said.
'We recognize the efforts and accomplishments of the impacted team members, and we thank them for their contributions.'
GM's announcement adds to a bleak outlook for Americans seeking new roles. Layoffs have risen 140 percent from a year ago.
Companies like Target, Procter & Gamble, and Walmart have slashed thousands of mid-level corporate jobs this year.
Staff cuts have been even more pronounced in the tech sector, as firms increasingly replace human employees with hyper-intelligent machines.
Microsoft, one of the leading firms investing in AI, is expected to lay off thousands of employees next month as it shifts resources toward deeper investments.
And Intel — which makes processors that power millions of Dell, HP, and Lenovo computers — will slash 25,000 jobs this year as it battles to turn around its flagging fortunes.
Amazon CEO Andy Jassy recently said the quiet part out loud: the technology will uproot thousands of Americans from their jobs.
