Despite rising profits, this major automobile company has laid off over 200 employees.

General Motors (GM) has laid off hundreds of employees, just days after the company raised its profit guidance for 2025, sending its shares soaring. Reports indicate that the company has laid off over 200 salaried staff, most of whom were working at the Warren Technical Center in Michigan.

GM informed some affected employees via a Slack channel around 7 a.m. Friday that their jobs were being eliminated due to “business conditions,” not performance. Company insiders told Bloomberg (via Detroit News) that the decision was made to increase operational efficiency and eliminate duplicate roles.

Surprisingly, GM had just released strong third-quarter results. The company reported higher-than-expected profits and raised its full-year profit forecast. Following this news, the company’s shares saw their biggest single-day jump in five years.

According to reports, the layoffs were primarily in the company’s design engineering department. The company said in an emailed statement, “We are restructuring our team structure to strengthen our core architectural design engineering capabilities. Consequently, some Computer-Aided Design (CAD) roles have been eliminated. We appreciate the efforts and contributions of the affected employees.”

These layoffs are another step in a series of cuts at GM in recent months. Earlier this month, the company laid off several salaried employees while closing its Hydrotec brand in Pontiac. In November 2024, GM laid off approximately 1,000 employees, 507 of whom were based at the Warren Technical Center. In August 2024, the company also laid off more than 1,000 salaried workers from its Software and Services Division.