DETROIT – An eerie email about a 15-minute awkward meeting. Text message from human services. And an abrupt end to that meeting, and their work.
That’s right General Motors workers laid off Monday by the Detroit automaker explained that their jobs are being cut to CNBC.
“There’s no appreciation or empathy. No questions. Nothing,” said a data analyst who worked for more than a decade at the automaker.
The layoffs affect about 500 to 600 workers, mostly in technical roles in Austin, Texas and Warren, Michigan, according to a GM person familiar with the layoffs who asked not to be identified to discuss the details. The layoffs came as the automaker reassessed labor needs and cut costs amid uncertain market conditions.
The two laid-off workers, who asked not to be identified for fear of repercussions or potential job impacts, said their units have recently been restructured and they are encouraged to use artificial intelligence more in their work.
“They’re going to push AI for day-to-day work and everything else,” said the company’s veteran programmer and data scientist. “I’ve seen it myself. It can make you more productive, like a programmer. It can really help you do more work, but AI won’t help you if you don’t know the business.”
Automakers, like many large companies, are using AI to help employees make their jobs more efficient, but the emerging technology has also led to layoffs. Companies like Amazon, Meta, Oracle and Block it announced a series of job cuts, some emphasizing the role of AI in automating work and improving productivity through lower headcount.
GM declined to discuss the role AI played in its recent layoffs or provide more details on the reasons for the layoffs without a statement Monday: “GM is transforming its Information Technology organization to better position the company for the future. As part of that effort, we have made the difficult decision to eliminate certain roles around the world. We are grateful for the contributions of affected employees and are committed to supporting them in this transition.”
A GM person familiar with the layoffs told CNBC that AI played a role in the decision, as it continues to hire people with such skills, but it was not the sole reason for the layoffs.
The data science worker said they had been using and learning more about AI for months to try to achieve what they thought GM wanted out of their team.
Despite Monday’s cutbacks, GM is still hiring IT workers. The company as of Tuesday had nearly 80 open IT positions including jobs in AI, automotive and autonomous vehicles, according to the Detroit automaker’s careers website.
The layoffs affected dozens of workers, according to the people, who asked not to be identified.
A draft of the GM Severance Plan sent to affected workers and reviewed by CNBC provides a two-month layoff for those with one to four years of experience. That’s increasing, and workers with eight years of experience get four months of severance, for example. At the top of the scale, GM offers six months of severance to employees who have been with the company for 12 years or more.
Lump-sum payments toward health care between $2,000 and $6,000 will also be offered, according to the documents. Any unused vacation or sick time is forfeited unless such actions violate state laws.
GM also provided services through mental health care company Lyra to “navigate through job loss” and job training and future career assistance through outplacement services company LHH.
“Discovering a job loss can bring a complex mix of emotions, including stress, sadness, and even confusion. As you navigate this time of transition, please know that support is available,” one of the posts read.
All benefits are pending for workers who signed the release agreement, according to the documents. They must also, if applicable, return their company vehicles and any property.
