DETROIT – An ominous email about a 15-minute virtual meeting at a strange time. A written message from human resources. And an abrupt end to that meeting, as well as to his work.
This is how general motors Employees who were laid off Monday by the Detroit automaker described the layoffs from their jobs 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 between 500 and 600 employees, largely in information technology roles in Austin, Texas, and Warren, Michigan, according to a GM person familiar with the layoffs who asked not to be identified to discuss details that had not been made public. The layoffs came as the automaker reassesses its workforce needs and cuts costs amid uncertain market conditions.
The two laid-off workers, who asked not to be identified for fear of repercussions or impacts on possible future employment, said their units had undergone 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 at 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 won't do you any good if you don't know the business.”
Automakers, like many major companies, are using AI to help workers do their jobs more efficiently, but the emerging technology has also 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 increasing productivity with fewer employees.
GM declined to discuss the role AI played in its most recent layoffs or provide additional details of the reasoning for the job cuts outside of a statement Monday: “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 affected employees and are committed to supporting them during this transition.”
The 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 only reason for the layoffs.
The data scientist employee said he had been using and learning more about AI for months to try to meet what he thought GM wanted from its team.
Despite Monday's cuts, GM is still hiring IT workers. The company had about 80 open IT positions as of Tuesday, including jobs in artificial intelligence, 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 not to be identified.
An overview of the GM Severance Program sent to affected employees and seen by CNBC offered a two-month severance package for those with one to four years of experience. This increases and employees with eight years of experience receive four months of compensation, for example. 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 payments for medical care of between $2,000 and $6,000 will also be provided, according to the documents. Any unused vacation or sick days would be forfeited unless such actions violated state law.
GM also offered services through mental health care company Lyra “to cope with job loss” and career counseling and future employment 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, know that support is available,” one of the documents reads.
All benefits are pending employees signing a release agreement, according to the documents. They must also, where appropriate, return their company vehicles and any equipment.
