DETROIT — A creepy email about a strangely timed 15-minute virtual meeting. Scripted message from Human Resources. And then the meeting and their work came to an abrupt end.
in that way general motors Employees laid off by the Detroit automaker on Monday told CNBC that their jobs had been terminated.
“No appreciation, no empathy. No questions, nothing,” said a data analyst who worked at the company for more than a decade.
The layoffs will affect about 500 to 600 employees, mostly in information technology jobs, in Austin, Texas, and Warren, Michigan, said a GM official with knowledge of the layoffs, who requested anonymity because the details are not public. The job cuts come as automakers reassess employee needs and cut costs amid uncertain market conditions.
The two laid-off employees, who requested anonymity for fear of repercussions or repercussions for their future work, said their units had recently undergone restructuring and were being encouraged to make greater use of artificial intelligence in their work.
“They’re going to push AI into everyday work and everything else,” said a veteran programmer and data scientist at the company. “I’ve seen it firsthand. As a programmer, it increases your productivity tremendously. It really helps you get more work done, but if you don’t know your business, AI won’t help you.”
Like many major companies, automakers are using AI to help employees do their jobs more efficiently, but the emerging technology is also leading to layoffs. Companies like Amazon, Meta, and Oracle block Some companies have announced layoffs, and some are emphasizing the role of AI in automating tasks and increasing productivity through reduced headcount.
GM declined to discuss the role AI played in the latest round of layoffs or to elaborate on the reasons for the layoffs outside of Monday’s statement. “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 globally. We appreciate the contributions of affected employees and are committed to supporting them through this transition.”
A GM source familiar with the layoffs told CNBC that while AI played a role in the decision, as the company continues to hire people with those skill sets, it was not the only reason for the layoffs.
The data scientist employee said he has been using and learning more about AI for several months to achieve what he thinks GM wants from the team.
Despite Monday’s layoffs, GM is still hiring employees in its IT department. The Detroit automaker’s career website said the company had about 80 job openings as of Tuesday for IT jobs in areas such as AI, motorsports and self-driving cars.
The layoffs affected employees at various levels of seniority, said the people, who requested anonymity.
A summary of the GM severance program sent to affected employees and seen by CNBC provides two months of severance for employees with one to four years of experience. It expands and, for example, employees with 8 years of experience are given 4 months of severance. At the highest standards, GM offers six months of severance to employees who have been with the company for 12 years or more.
They will also receive a one-time payment of between $2,000 and $6,000 for medical expenses, the document said. Unused vacation and sick days were forfeited unless they violated state law.
GM also offered services to “cope with unemployment” through its mental health care company Lyra, and career coaching and future employment support through its outplacement services company LHH.
One of the documents reads: “Experiencing job loss can bring with it a mix of emotions, including stress, sadness and even confusion. We want you to know that support is available to you as you navigate this period of change.”
All benefits are being withheld until the employee signs a termination agreement, according to the document. You must also return your company vehicle and all equipment, if applicable.
