Laid off GM employees describe ominous meeting, AI and severance

DETROIT — An ominous email about an oddly timed 15-minute virtual meeting. A scripted message from human resources. And an abrupt end to that meeting, as well as their job.

That’s how several General Motors employees who were laid off Monday by the Detroit automaker described their jobs being terminated 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 impacted about 500 to 600 employees, largely in information technology roles in Austin, Texas, and Warren, Michigan, and came as the automaker reevaluates its workforce needs and cuts costs amid uncertain market conditions.

Two laid off workers who agreed to speak to CNBC on the condition of anonymity for fear of repercussions or impacts to potential future jobs said their units had gone through recent restructurings and that they were being encouraged to use artificial intelligence more in their work.

“They’re going to push AI for everyday work and everything else,” said a veteran programmer and data scientist for the company. “I’ve seen it firsthand. It can make you much more productive, as a programmer. It can really help you get more work done, but AI isn’t going to do you any good if you don’t know the business.”

Automakers, like many major companies, are using AI to help workers make their jobs more efficient, but the emerging technology also has led to layoffs. Companies like Amazon, Meta, Oracle and Block have announced rounds of job cuts, with some emphasizing AI’s role in automating work and boosting productivity with lower headcounts.

GM declined to discuss the role AI played in its most recent layoffs or give additional details of reasoning for the job cuts outside of a Monday statement: “GM is transforming its Information Technology organization to better position the company for the future. As part of that work, we have made the difficult decision to eliminate certain roles globally. We are grateful for the contributions of the employees affected and are committed to supporting them through this transition.”

A GM source familiar with the layoffs who requested anonymity to speak about details that had not been made public told CNBC that AI played a role in the decision, as it continues to hire people with such skillsets, but it was not the only reason for the terminations.

The data scientist employee said they had been using and learning more about AI for months to try to fulfill what they thought GM wanted out of their team.

Despite Monday’s cuts, GM is still hiring IT workers. The company as of Tuesday had roughly 80 open IT positions that include jobs working in AI, motorsports and autonomous vehicles, according to the Detroit automaker’s careers website.

The layoffs impacted employees with a wide array of seniority, according to those involved and with knowledge of the plans.

An overview of the GM Severance Program sent to impacted employees and viewed by CNBC offered severance of two months for those who had one to four years of experience. That scales up, and employees with eight years of experience get four months of severance, for example. At the top of the scale, GM is offering six months of severance for employees who had worked at the company for 12 or more years.

Lump-sum payments toward health care between $2,000 and $6,000 also will be provided, according to the documents. Any unused vacation or sick time was forfeited unless such actions violated state laws.

GM also offered services through mental health care company Lyra “for navigating job loss” and career coaching and future job assistance through outplacement services company LHH.

“Experiencing job loss can bring a complex mix of emotions, including stress, sadness, and even confusion. As you navigate this time of change, please know that support is available,” one of the documents read.

All benefits are pending employees signing a release agreement, according to the documents. They also must, if applicable, return their company vehicles and any equipment.