Three major Detroit-based automakers, General Motors (GM), Ford Motor (F), and Stellantis (STLA), have cut more than 20,000 U.S. salaried jobs altogether in recent years. The move comes as artificial intelligence (AI) takes over more roles and jobs in the automotive industry.
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The job cuts across these three companies account for almost 19% of the Detroit automakers’ office workforce compared to their highest hiring levels in the last decade. The firms say they are pivoting to software-defined vehicles, autonomous driving technology, electric vehicles, and AI-driven operations.
General Motors Leads Job Cuts Amid AI Shift
While the “Detroit Three” automakers have collectively laid off over 20,000 workers, reports reveal that General Motors alone has recorded the largest job cuts. The company has cut roughly 11,000 salaried positions through 2025. The dismissals began after General Motors expanded its workforce from roughly 48,000 employees in 2020 to 58,000 employees in 2022.
The company has made a deeper push into AI and software-driven businesses in recent years. As part of that transition, it announced further job cuts this week that could affect between 500 and 600 office workers worldwide. These layoffs will mostly be in IT departments located in Texas and Michigan.
People familiar with the matter said some of these job replacements were due to shifts in workforce demand related to AI. However, the automaker has continued to hire for AI-related roles and is pushing employees to learn how to use AI tools for their everyday jobs.
At the same time, a top General Motors programmer and data scientist who was laid off this week said that while AI can help the company be more productive, it still needs workers who understand these AI systems. However, General Motors CEO Mary Barra had previously said the shift is part of the company’s preparation for the next stage of its growth.
Ford And Stellantis Also Reduce Staff While Expanding AI Hiring
Ford Motor and Stellantis have also reduced white-collar staff. However, they have done so at a slower pace than General Motors. Ford has reduced its headcount by roughly 5,300 since 2020, while Stellantis cut its salaried staff from around 15,000 to about 11,000 in the same year.
Ford CEO Jim Farley warned last year that AI could replace many white-collar jobs in the United States. He also noted that AI may leave many office workers behind.
Despite the layoffs, the automakers are still actively recruiting in certain areas. The three companies currently have more than 2,000 open U.S. positions. Notably, many of these jobs are directly related to AI.
At the same time, Stellantis CEO, Antonio Filosa, has said the firm still plans to add more than 2,000 white-collar jobs in North America as it continues to reshape its business.
Meanwhile, analysts say the firms are not planning to fully replace humans as they embrace AI. Instead, they believe AI will reshape job descriptions and reduce repetitive office tasks. The shift will also increase demand for workers focused on software, cybersecurity, autonomous driving systems, and high-tech vehicle functions.
What Are the Best Automaker Stocks to Buy Now?
Wall Street analysts tracked by TipRanks rate General Motors (GM) a Moderate Buy, Ford (F) a Hold, and Stellantis (STLA) a Moderate Buy. Among these stocks, GM has the highest upside potential of 26.90%, and an average price target of $96.29. For more information on their performances, ratings, and price targets, visit the TipRanks Stocks Comparison Center.
