General Motors (GM) is under fire from more than 1,000 workers in its software and services division who were laid off earlier this week.
The affected employees have expressed frustration with how the situation was handled, feeling that their contributions were undervalued.
One product manager voiced their disappointment on LinkedIn, stating:
“We were all used as stepping stones, to build exceptional products, industry-first tech, and leapfrog our competitors. All for what? A pat on the back and ‘good job’.”
Global Impact of the Layoffs
The layoffs had a worldwide impact, with approximately 600 workers affected in Warren, Michigan, where GM’s tech campus is located. This campus is home to over 21,000 employees.
According to CNBC, workers were notified on Monday morning, but some only realized they were laid off when they lost access to their computers or emails.
One former engineer discovered they had been laid off when their badge was deactivated upon arriving at work. This situation is reminiscent of a similar experience earlier this year at Tesla, where employees found themselves locked out of the Sparks, Nevada factory during a round of layoffs.
GM’s Official Response
In response to the backlash, GM issued a statement emphasizing the need to “simplify for speed and excellence” as the company looks toward the future. The automaker acknowledged the contributions of those affected, saying:
“We are grateful to those who helped establish a strong foundation that positions GM to lead moving forward.”
Financial Context Behind the Layoffs
General Motors recent layoffs come on the heels of a strong second-quarter financial performance.
The company reported $47.9 billion in revenue and a net income of $2.9 billion, surpassing expectations. GM raised its projected adjusted earnings for the year, further increasing targets for operating cash flow and earnings per share.
One worker said:
“We are nothing but numbers to them, fat to be trimmed off in the pursuit of the almighty dollar.”
