GM Lays Off Over 200 Employees as Trump’s Tariff Policy Boosts U.S. Automakers

DETROIT — General Motors has laid off more than 200 salaried employees as part of an ongoing effort to streamline operations, reduce costs, and strengthen profitability.

According to the company, most of the affected workers were Computer-Aided Design (CAD) engineers based at GM’s global technical center in metro Detroit.

“We’re restructuring our design engineering team to sharpen our core capabilities,” GM said in a statement. “As a result, several CAD execution roles have been eliminated. We sincerely appreciate the dedication and hard work of the team members impacted.”

Sources familiar with the situation told CNBC that the layoffs affected just over 200 employees, although GM declined to confirm the exact number. The workers were reportedly informed of the decision via Microsoft Teams calls on Friday and told the move was due to “business conditions,” not job performance.

This restructuring marks GM’s latest step in a broader effort to review its operations and eliminate redundancy. The company’s salaried U.S. workforce dropped from 53,000 in 2023 to about 50,000 by the end of last year, continuing a trend of corporate downsizing across the auto industry.

The announcement also came just one day after EV maker Rivian cut 4.5% of its staff—over 600 workers—as electric vehicle demand slows amid shifting global policies and weaker consumer interest.

Meanwhile, President Donald Trump celebrated the impact of his new tariff policies on American automakers, noting on social media that both Ford and GM are “UP BIG on Tariffs.” The administration’s latest tariff adjustments on medium- and heavy-duty trucks have been welcomed by Detroit manufacturers, who say the move will help offset rising production costs and strengthen U.S. industry competitiveness.

Despite the layoffs, GM’s financial outlook remains strong. The automaker recently raised its 2025 profit guidance after beating Wall Street expectations in the third quarter. The positive earnings report drove GM shares to their second-best trading day since the company’s 2009 bankruptcy restructuring.

GM stock has climbed more than 29% year-to-date, while Ford’s shares have surged around 38%, both hitting new 52-week highs on Friday.