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		<title>Laid-off GM employees tell of ominous email, severance and role of AI</title>
		<link>https://lsd.hu/laid-off-gm-employees-tell-of-ominous-email-severance-and-role-of-ai/</link>
		
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		<pubDate>Wed, 13 May 2026 03:31:49 +0000</pubDate>
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		<guid isPermaLink="false">https://lsd.hu/laid-off-gm-employees-tell-of-ominous-email-severance-and-role-of-ai/</guid>

					<description><![CDATA[DETROIT — An ominous email about an oddly timed 15-minute virtual meeting. A scripted message from human resources. And an abrupt end to that meeting, as well as their job. That&#8217;s how General Motors employees who were laid off Monday by the Detroit automaker described their jobs being terminated to CNBC. &#8220;No appreciation or empathy. [&#8230;]]]></description>
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<p>DETROIT — An ominous email about an oddly timed 15-minute virtual meeting. A scripted message from human resources. And an abrupt end to that meeting, as well as their job. </p>
<p>That&#8217;s how <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-1">General Motors<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><button class="AddToWatchlistButton-watchlistButton" aria-label="Add To Watchlist" data-testid="dropdown-btn"><span class="AddToWatchlistButton-addWatchListFromTag"/></button></span></span></span> employees who were laid off Monday by the Detroit automaker described their jobs being terminated to CNBC.</p>
<p>&#8220;No appreciation or empathy. No questions. Nothing,&#8221; said a data analyst who worked for more than a decade at the automaker.</p>
<p>The layoffs affect about 500 to 600 employees, largely in information technology roles in Austin, Texas, and Warren, Michigan, according to a person at GM familiar with the layoffs who asked not to be named in order to speak about details that had not been made public. The layoffs came as the automaker reevaluates its workforce needs and cuts costs amid uncertain market conditions.</p>
<p>The two laid-off workers, who asked not to be named for fear of repercussions or impacts to potential future jobs, said their units had gone through recent restructurings and that they were being encouraged to use artificial intelligence more in their work. </p>
<p>&#8220;They&#8217;re going to push AI for everyday work and everything else,&#8221; said a veteran programmer and data scientist for the company. &#8220;I&#8217;ve seen it firsthand. It can make you much more productive, as a programmer. It can really help you get more work done, but AI isn&#8217;t going to do you any good if you don&#8217;t know the business.&#8221;</p>
<p>Automakers, like many major companies, are using AI to help workers make their jobs more efficient, but the emerging technology also has led to layoffs. Companies such as Amazon, Meta, Oracle and <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-6">Block<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><button class="AddToWatchlistButton-watchlistButton" aria-label="Add To Watchlist" data-testid="dropdown-btn"><span class="AddToWatchlistButton-addWatchListFromTag"/></button></span></span></span> have announced rounds of job cuts, with some emphasizing AI&#8217;s role in automating work and boosting productivity with lower head counts.</p>
<p>GM declined to discuss the role AI played in its most recent layoffs or give additional details of reasoning for the job cuts outside of a statement Monday: &#8220;GM is transforming its Information Technology organization to better position the company for the future. As part of that work, we have made the difficult decision to eliminate certain roles globally. We are grateful for the contributions of the employees affected and are committed to supporting them through this transition.&#8221;</p>
<p>The person at GM familiar with the layoffs told CNBC that AI played a role in the decision, as it continues to hire people with such skill sets, but it was not the only reason for the terminations.</p>
<p>The data scientist employee said they had been using and learning more about AI for months to try to fulfill what they thought GM wanted out of their team.</p>
<p>Despite Monday&#8217;s cuts, GM is still hiring IT workers. The company as of Tuesday had roughly 80 open IT positions that include jobs working in AI, motorsports and autonomous vehicles, according to the <a href="https://search-careers.gm.com/en/jobs/?search=&amp;team=Information+Technology&amp;pagesize=20#results" target="_blank" rel="noopener">Detroit automaker&#8217;s careers website</a>.</p>
<p>The layoffs affected employees with a wide array of seniority, according to the people who asked not to be named.</p>
<p>An overview of the GM Severance Program sent to affected employees and viewed by CNBC offered severance of two months for those who had one to four years of experience. That scales up, and employees with eight years of experience get four months of severance, for example. At the top of the scale, GM is offering six months of severance for employees who had worked at the company for 12 or more years. </p>
<p>Lump-sum payments toward health care between $2,000 and $6,000 also will be provided, according to the documents. Any unused vacation or sick time was forfeited unless such actions violated state laws.</p>
<p>GM also offered services through mental health care company Lyra &#8220;for navigating job loss&#8221; and career coaching and future job assistance through outplacement services company LHH.</p>
<p>&#8220;Experiencing job loss can bring a complex mix of emotions, including stress, sadness, and even confusion. As you navigate this time of change, please know that support is available,&#8221; one of the documents read. </p>
<p>All benefits are pending employees signing a release agreement, according to the documents. They also must, if applicable, return their company vehicles and any equipment. </p>
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		<title>Elon Musk says in email that Tesla sent &#8216;incorrectly low&#8217; severance packages to some laid-off employees</title>
		<link>https://lsd.hu/elon-musk-says-in-email-that-tesla-sent-incorrectly-low-severance-packages-to-some-laid-off-employees/</link>
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		<dc:creator><![CDATA[LSD News Szerkesztőség]]></dc:creator>
		<pubDate>Thu, 18 Apr 2024 05:23:14 +0000</pubDate>
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		<guid isPermaLink="false">https://www.lsd.hu/elon-musk-says-in-email-that-tesla-sent-incorrectly-low-severance-packages-to-some-laid-off-employees/</guid>

					<description><![CDATA[Elon Musk, Chief Executive Officer of Tesla and owner of X, formerly known as Twitter, attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition center in Paris, France, June 16, 2023.  Gonzalo Fuentes &#124; Reuters Tesla CEO Elon Musk sent an internal email on Wednesday, telling staffers that [&#8230;]]]></description>
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<p>Elon Musk, Chief Executive Officer of Tesla and owner of X, formerly known as Twitter, attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition center in Paris, France, June 16, 2023. </p>
<p>Gonzalo Fuentes | Reuters</p>
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<p><span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-1">Tesla<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><button class="AddToWatchlistButton-watchlistButton" aria-label="Add To Watchlist" data-testid="dropdown-btn"><span class="AddToWatchlistButton-addWatchListFromTag"/></button></span></span></span> CEO Elon Musk sent an internal email on Wednesday, telling staffers that the company sent out some severance packages that were too low to a number of laid-off workers this week.</p>
<p>&#8220;As we reorganize Tesla it has come to my attention that some severance packages are incorrectly low,&#8221; Musk wrote in the brief email. &#8220;My apologies for this mistake. It is being corrected immediately.&#8221;</p>
<p>Tesla didn&#8217;t immediately respond to a request for comment.</p>
<p>The electric vehicle company said on Monday that it would be cutting more than 10% of its global workforce, which totaled around 140,000 employees at the end of 2023.</p>
<p>Few details have been shared by the company about the layoffs, but in a companywide memo sent on Monday, Musk said the layoffs would help, &#8220;prepare the company&#8221; for a &#8220;next phase of growth.&#8221;</p>
<p>Earlier this month, Reuters reported that Tesla would be shifting its strategy, and scrapping an earlier plan to produce a more affordable EV in favor of focusing on robotaxi development at Musk&#8217;s direction. On Tuesday this week, Musk appeared to confirm that report in a <a href="https://twitter.com/elonmusk/status/1780376546148327690" target="_blank" rel="noopener">post</a> on X.</p>
<p>Musk hasn&#8217;t yet said whether Tesla will stick with his 2023 &#8220;master plan,&#8221; which laid out &#8220;a proposed path to reach a sustainable global energy economy through end-use electrification and sustainable electricity generation and storage.&#8221;</p>
<p>The company reported an 8.5% year-over-year decline in first-quarter deliveries, the first drop since 2020, when operations were disrupted by the global pandemic.</p>
<p>Tesla is set to discuss first-quarter results with shareholders on April 23, and executives are likely to reveal more about the restructuring and which departments were most impacted.</p>
<p>In a proxy filing out on Wednesday, Tesla asked shareholders to approve a CEO pay package for Musk that&#8217;s equivalent to the record compensation plan the company previously granted him in 2018.</p>
<p>His earlier CEO pay plan, worth $56 billion, was voided in a ruling by Delaware chancery court judge Kathaleen McCormick, who decided that, as CEO, Musk controlled Tesla, and the board&#8217;s compensation committee wasn&#8217;t independent, among other factors.</p>
<p>Tesla shares have dropped about 37% this year as of Wednesday, closing at $155.45.</p>
<p><strong>WATCH:</strong> This is a &#8216;fork in the road&#8217; period for Musk and Tesla</p>
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		<title>Wells Fargo CEO warns of severance costs of nearly $1 billion in fourth quarter as layoffs loom</title>
		<link>https://lsd.hu/wells-fargo-ceo-warns-of-severance-costs-of-nearly-1-billion-in-fourth-quarter-as-layoffs-loom/</link>
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		<pubDate>Sat, 09 Dec 2023 17:10:17 +0000</pubDate>
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		<guid isPermaLink="false">https://www.lsd.hu/wells-fargo-ceo-warns-of-severance-costs-of-nearly-1-billion-in-fourth-quarter-as-layoffs-loom/</guid>

					<description><![CDATA[Charlie Scharf, CEO, Wells Fargo, speaks during the Milken Institute Global Conference in Beverly Hills, California on May 2, 2023. speaks during the Milken Institute Global Conference in Beverly Hills, California on May 2, 2023. Patrick T. Fallon &#124; Afp &#124; Getty Images Wells Fargo CEO Charlie Scharf said Tuesday that low staff turnover means [&#8230;]]]></description>
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<p>Charlie Scharf, CEO, Wells Fargo, speaks during the Milken Institute Global Conference in Beverly Hills, California on May 2, 2023. speaks during the Milken Institute Global Conference in Beverly Hills, California on May 2, 2023.</p>
<p>Patrick T. Fallon | Afp | Getty Images</p>
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<p><span id="RegularArticle-QuoteInBody-1" class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody">Wells Fargo<span id="-WatchlistDropdown" class="AddToWatchlistButton-watchlistContainer" data-analytics-id="-WatchlistDropdown"><button class="AddToWatchlistButton-watchlistButton" aria-label="Add To Watchlist" data-testid="dropdown-btn"></button></span></span> CEO Charlie Scharf said Tuesday that low staff turnover means the company will likely book a large severance expense in the fourth quarter.</p>
<p>&#8220;We&#8217;re looking at something like $750 million to a little less than a billion dollars of severance in the fourth quarter that we weren&#8217;t anticipating, just because we want to continue to focus on efficiency,&#8221; Scharf told investors during a <span id="RegularArticle-QuoteInBody-3" class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody">Goldman Sachs<span id="-WatchlistDropdown" class="AddToWatchlistButton-watchlistContainer" data-analytics-id="-WatchlistDropdown"><button class="AddToWatchlistButton-watchlistButton" aria-label="Add To Watchlist" data-testid="dropdown-btn"></button></span></span> conference in New York.</p>
<p>That expense is an accrual for worker layoffs that Wells Fargo expects to make next year, according to a bank spokeswoman. The company declined to say how many jobs it will cut.</p>
<p>Wells Fargo needs to get &#8220;more aggressive&#8221; managing headcount because employee attrition has slowed this year, Scharf added.</p>
<p>Wall Street leaders including Scharf and <span id="RegularArticle-QuoteInBody-4" class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody">Morgan Stanley<span id="-WatchlistDropdown" class="AddToWatchlistButton-watchlistContainer" data-analytics-id="-WatchlistDropdown"><button class="AddToWatchlistButton-watchlistButton" aria-label="Add To Watchlist" data-testid="dropdown-btn"></button></span></span> CEO James Gorman have said that unusually low attrition among their workers <a href="https://wikifestera.com/" target="_blank" rel="noopener">Link Slot</a> has left them bloated. The industry has been cutting jobs in the past year as it deals with rising funding costs, a prolonged slump in Wall Street deals and concern over loan losses.</p>
<p><strong>Read more</strong>: Big banks are quietly cutting thousands of employees, and more layoffs are coming</p>
<p>Wells Fargo, the fourth-biggest U.S. bank by assets, was already among the most active in laying off workers this year, thanks in part to its retrenchment from the mortgage arena. The bank has cut about 11,300 jobs so far in 2023, or 4.7% of its workforce, and had 227,363 employees as of September.</p>
<p>Scharf spoke of needing to both get more efficient, while continuing to invest in revenue-generating areas including credit cards and capital markets.</p>
<p>The bank is &#8220;is not even close&#8221; to where it should be on efficiency, Scharf said.</p>
<p>Under previous leadership, employees had fanned out across the country. Now, Scharf wants them near one of the bank&#8217;s office hubs. Some workers will be offered paid relocations, while others will only be offered severance. Workers who don&#8217;t opt to move may lose their roles, according to a person with knowledge of the situation.</p>
<p>While his actions point to caution for next year, Scharf said Tuesday that both consumers and businesses were holding up well, and that his base case for next year is &#8220;closer to a soft landing&#8221; for the U.S. economy.</p>
<p>Wells Fargo shares fell more than 1% on Tuesday.</p>
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<p><em><strong>Don&#8217;t miss these stories from CNBC PRO:</strong></em></p>
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