GM, Ford, and Stellantis have collectively cut nearly a fifth of their white-collar employees. As AI advances, this number may be just the beginning.
On the dash:
- The Detroit Three have cut more than 20,000 salaried jobs from their recent hiring peak.
- AI is now accelerating workforce reductions that began years before the technology arrived.
- Experts warn that 10% to 15% of all U.S. jobs could be lost to AI.
Artificial intelligence is accelerating a multi-year decline in white-collar jobs across America’s largest automakers. This trend is expected to continue as advances in AI enable companies to automate more roles. Just last week, General Motors announced it would cut 500 to 600 well-paid IT employees in Texas and Michigan as it restructures its workforce around AI.
GMs are not alone. The Detroit Three has laid off more than 20,000 U.S. salaried employees, or about 19% of its workforce, according to CNBC, citing public documents and employment data from both companies. The number of white-collar employees at General Motors, Ford Motor Co. and Stellantis peaked at about 102,000 in 2022, but that number had fallen to 88,700 by the end of last year.
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Where the Detroit Three are making cuts
GM led the cuts. The company expanded its U.S. white-collar workforce from 48,000 in 2020 to 58,000 in 2022, but has since reversed course. Since then, the company has eliminated approximately 11,000 salaried positions through a series of cuts, including: Suspension of software and services, global restructuring, Reduction in CAD engineers and Downsizing of cruise robotaxi business.
Ford and Stellantis made even more modest cuts. Ford has cut about 5,300 salaried positions from its 2020 peak through a series of policies. EV drive Reorganization movementlast year landed about 30,700 white-collar employees. Stellantis’ number of salaried employees in the U.S. decreased from 15,000 to approximately 11,000 in 2020. Paid technical and engineering positions Offers multiple rounds employee acquisition On the way.
AI, not the economy, is driving this next wave of layoffs. Ford CEO Jim Farley spoke candidly about this at the Aspen Ideas Festival in July.
“Artificial intelligence will replace literally half of all white-collar workers in the United States,” Farley said. “AI will displace many white-collar people.”
who is hiring
This trend is not uniform across industries. According to CNBC, Toyota will increase its white-collar workforce in the U.S. by about 31% from 2020 to 2025, reaching about 47,500 employees. Job growth will be driven by Toyota’s ambitious hybrid strategy and investment efforts up to $10 billion Over the next five years, we will strengthen our presence in the United States and recently $2 billion expansion of Texas factory This would create 2,000 additional jobs.
The Detroit Three are still hiring in some areas, including AI. Together, the three automakers currently have more than 2,000 job postings in the United States. Nearly 400 of these are related to AI, with GM accounting for more than 250. Stellantis CEO Antonio Filosa said the company plans to add more than 2,000 white-collar jobs in North America as part of a broader turnaround effort.
How AI will impact employment across industries
The impact of AI on jobs goes far beyond the auto industry. A recent Boston Consulting Group report predicts that the growth of AI could eliminate 10% to 15% of U.S. jobs and restructure 50% to 55% of all U.S. jobs within the next two to three years.
The question is no longer whether AI will replace some jobs. It’s already happening. What remains to be seen is the full extent of the AI revolution in the auto industry and other industries, and whether the workforce and economy as a whole can withstand what comes next.
