DETROIT — A disturbing email about an oddly scheduled 15-minute virtual meeting. A scripted message from human resources. And a brutal end to this meeting, as well as their work.
It’s like this General engines Employees laid off Monday by the Detroit automaker described their layoffs to CNBC.
“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 employees, largely in information technology-related positions in Austin, Texas, and Warren, Michigan, according to a person at GM familiar with the layoffs who asked not to be named in order to speak about details that had not been made public. The layoffs come as the automaker reassesses its labor needs and cuts costs amid an uncertain market.
The two laid-off workers, who asked to remain anonymous for fear of repercussions on potential future jobs, said their units had recently undergone restructuring and they were encouraged to use more artificial intelligence in their jobs.
“They’re going to promote AI for everyday work and everything else,” said a senior programmer and data scientist at the company. “I’ve seen it firsthand. It can make you a lot more productive as a programmer. It can definitely help you get more work done, but AI won’t do you any good if you don’t know the craft.”
Automakers, like many large companies, are using AI to help their workers make their jobs more efficient, but emerging technology has also led to layoffs. Companies such as Amazon, Meta, Oracle and Block have announced rounds of job cuts, with some highlighting the role of AI in automating work and increasing productivity with downsizing.
GM declined to discuss the role AI played in its most recent layoffs or provide additional details about the reasons for the job cuts beyond a Monday statement: “GM is transforming its IT organization to better position the company for the future.” As part of this work, we have made the difficult decision to eliminate certain positions globally. We are grateful for the contributions of affected employees and are committed to supporting them through this transition.
The person at GM familiar with the layoffs told CNBC that AI played a role in the decision because it continues to hire people with such skills, but that wasn’t the only reason for the layoffs.
The employee data scientist said he had been using and learning about AI for months to try to achieve what he thought GM wanted from his team.
Despite Monday’s job cuts, GM continues to hire computer scientists. As of Tuesday, the company had about 80 open IT positions, including jobs in AI, motorsports and autonomous vehicles, according to the Detroit automaker’s careers website.
The layoffs affected employees with a wide range of seniority, according to the people who asked to remain anonymous.
An outline of GM’s severance package sent to affected employees and viewed by CNBC proposed a two-month severance package for those with one to four years of experience. This is increasing and employees with eight years of experience receive, for example, four months of severance pay. At the top of the scale, GM offers six months of severance to employees who have worked at the company for 12 years or more.
Lump sum health care payments of between $2,000 and $6,000 will also be provided, according to the documents. Any unused vacation or sick leave was forfeited unless such actions violated state laws.
GM also offered services through mental health care company Lyra “to deal with job loss,” as well as career coaching and future employment assistance through outplacement services company LHH.
“Experiencing a job loss can bring a complex mix of emotions, including stress, sadness, and even confusion. As you navigate this time of change, know that support is available,” one of the documents reads.
All benefits are expected by employees who sign a release agreement, according to the documents. They must also, if necessary, return their company vehicles and any equipment.