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The news hit quietly on a Friday morning in Michigan, but it sent another ripple through the country’s automaking capital. General Motors confirmed it had laid off more than 200 salaried employees at its global tech campus near Detroit, continuing a wave of cost-cutting moves sweeping through the auto industry.

Most of the affected workers were Computer-Aided Design engineers

They’re GM’s specialists who help shape vehicle structures before they ever reach a factory floor.

GM explained that it’s reworking its design engineering team to strengthen its core architectural capabilities.

In plain terms, that means fewer hands focused on execution and more attention on long-term design strategy.

The employees reportedly learned of the cuts over Microsoft Teams calls

GM described the decision as based on “business conditions,” not employee performance.

CNBC said that the company didn’t give an exact number, but sources familiar with the situation said it topped 200 workers, a detail first reported by Bloomberg.

The timing of the layoffs stands out

GM had just raised its 2025 financial outlook earlier in the week after beating third-quarter expectations.

Executives told investors that cost discipline would remain a key focus as GM pushes deeper into electric and autonomous vehicle programs.

Taking a high-level view, the job reductions follow a broader pattern across the automotive landscape.

Just one day before GM’s move, electric truck maker Rivian announced it was cutting about 4.5% of its workforce

That’s more than 600 people. Rivian said it’s reorganizing amid slower EV demand and shifting federal incentives.

Earlier this year, Tesla and Ford also trimmed staff to rein in spending after aggressive expansion phases.

Tesla cut U.S. contract workers twice this year, following a larger global layoff in 2024.

Ford felt forced to relieve hundreds of Kansas City workers this month after its major aluminum supplier suffered a devastating fire.

GM’s latest cuts represent a small portion of its roughly 50,000 U.S. salaried workers, down from 53,000 the year before

Still, the move underscores how even profitable automakers are tightening operations as economic uncertainty, tariffs, and EV market turbulence reshape their balance sheets.

Despite the layoffs, GM shares are up nearly 30% this year, with Ford climbing even higher

Investors seem pleased with the numbers. But for hundreds of engineers in metro Detroit, Friday’s news was another reminder that in today’s auto industry, even strong profits don’t always mean job security.

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