General Motors (GM) is cutting more than 200 salaried workers, days after the company reported strong financial results that sent its stock soaring.
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Management at GM said the job cuts are needed as the Detroit automaker continues to cut costs in order to boost profits. The impacted employees largely work in computer-aided design and include engineers based at the company’s technology campus in downtown Detroit.
“We’re restructuring our design engineering team to strengthen our core architectural design engineering capabilities,” said GM in a statement. “As a result, a number of CAD execution roles have been eliminated.”
Rising Number of Layoffs
General Motors is the latest U.S. corporation to announce sizable layoffs in recent days. Earlier in the week, Meta Platforms (META) announced that it was eliminating 600 positions in its artificial intelligence (AI) business unit. And discount retailer Target (TGT) just announced 1,800 layoffs, its biggest workforce reduction in a decade.
The layoffs at GM come days after the company posted better-than-expected third-quarter financial results and raised its 2025 guidance. The strong print caused GM stock to have its second-best day on the market since its 2009 emergence from bankruptcy.
Is GM Stock a Buy?
The stock of General Motors has a consensus Moderate Buy rating among 18 Wall Street analysts. That rating is based on 14 Buy, two Hold, and two Sell recommendations issued in the last three months. The average GM price target of $73.28 implies 6.87% upside from current levels.
