General Motors (GM) has laid off more than 200 salaried employees, primarily engineers from its Computer-Aided Design (CAD) department, as part of a broader restructuring of its design engineering team.
The layoffs were implemented on October 24, 2025, at the company’s global technical campus in Warren, Michigan.
The move comes shortly after GM reported stronger-than-expected third-quarter earnings and raised its financial outlook for the year.
The decision to reduce headcount is part of GM’s ongoing efforts to optimize operations, strengthen core capabilities, and align resources with long-term strategic goals.
While the company did not disclose the exact number of affected employees in its official statement, multiple reports, including those from Bloomberg and CNBC, confirm that over 200 roles were eliminated.
Focus on Core Architectural Design Capabilities
In a statement to employees, GM explained that the layoffs were not performance-related but stemmed from a strategic shift in its design engineering approach.
“We are restructuring our design engineering team to strengthen our core architectural design engineering capabilities,” the company stated.
“As a result, a number of CAD execution roles have been eliminated. We recognize the efforts and accomplishments of the impacted team members and thank them for their contributions”.
The company emphasized that the restructuring is intended to enhance efficiency and better position the organization to meet future product development needs.
The affected roles were primarily involved in execution tasks within the CAD function. GM now plans to consolidate or automate these tasks as part of its evolving design strategy.
Layoffs Follow Strong Financial Performance
The timing of the layoffs has drawn attention, as they occurred just days after GM announced robust third-quarter financial results.
The company’s earnings exceeded Wall Street expectations. This led to a surge in its stock price and an upward revision of its financial forecast for the remainder of 2025.
Despite the positive financial indicators, GM has reiterated its commitment to disciplined cost management.
The layoffs are part of a broader initiative to streamline operations.
GM is reallocating resources toward high-impact areas such as electric vehicle development, software integration, and advanced driver-assistance systems.
General Motors Employee Communication and Transition Support
According to reports, the affected employees were informed of the layoffs via Microsoft Teams meetings.
GM has not disclosed details about severance packages or transition support.
However, the company acknowledged the contributions of the impacted staff and stated that the decision was made with careful consideration.
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