General Motors (GM) has laid off more than 200 engineers, delivering the news via Microsoft Teams, even as the company reported stronger-than-expected profits and raised its financial outlook for 2025. The move, confirmed on October 24, 2025, has sparked criticism over the timing and method of the layoffs, highlighting the tension between corporate restructuring and record earnings.
Layoffs Amid Strong Earnings
The cuts primarily affected Computer-Aided Design (CAD) engineers at GM’s Global Technical Center in Warren, Michigan, according to company officials. GM described the decision as part of a broader business restructuring aimed at streamlining operations and focusing resources on high-margin vehicle segments. The company emphasized that the layoffs were not performance-related but reflected “business conditions.”
The announcement came just days after GM reported a third-quarter profit surge and raised its full-year guidance. The automaker’s stock has climbed steadily in 2025, buoyed by strong demand for trucks and SUVs, as well as cost-cutting measures across its global operations.
Delivery via Microsoft Teams
Employees learned of the layoffs during early-morning video calls on Microsoft Teams, a method that has drawn criticism for its impersonal nature. Some staff were reportedly added to a virtual meeting room where they were informed their positions had been eliminated. GM has not commented directly on the delivery method but said it is offering severance packages and career transition support.
Industry Context
The layoffs come as the automotive industry navigates shifting trade policies, rising tariffs, and the costly transition to electric vehicles (EVs). While GM has pledged billions toward EV development, it has also scaled back certain investments to preserve profitability. Analysts note that GM is not alone: other automakers, including Ford and Stellantis, have also announced job cuts this year as they balance restructuring with long-term electrification strategies.
Worker Impact and Broader Implications
For the affected engineers, many of whom had worked on GM’s design and product development teams, the layoffs underscore the volatility of the sector even during periods of financial strength. Labor advocates argue that the decision reflects a growing trend of corporations prioritizing shareholder returns over workforce stability.
Despite the backlash, GM maintains that the restructuring is necessary to remain competitive in a rapidly evolving market. The company has not ruled out further adjustments as it continues to evaluate its operations.
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Sources: CNBC; The Economic Times; Detroit News; TechGig; CBT News The Economic Times CNBC TechGig.com The Detroit News CBT Automotive Network
