News & Commentary

October 27, 2025

Justin Cassera

Justin Cassera is a student at Harvard Law School.

In today’s news and commentary, two automakers announce layoffs and Boeing workers reject the company’s latest contract offer. 

On Friday, General Motors laid off over 200 salaried employees just days after announcing improved profit expectations for 2025.  The layoffs primarily affected Computer-Aided Design (CAD) engineers at the company’s Detroit tech campus. The automaker has been reviewing its business model for years to improve profitability and performance. As part of a larger restructuring of the firm’s design engineering team, the company reportedly deemed the CAD positions duplicative of other roles. The affected employees were told the layoffs were due to “business conditions.”

News of the General Motors layoffs comes the day after electric vehicle company Rivian announced a 4.5% reduction in its workforce. According to a memo circulated to employees Thursday, the termination of over 600 workers heavily affected the company’s marketing, vehicle operations, sales and delivery, and mobile operations teams. The news comes as Rivian and other EV manufacturers face slower-than-expected demand and a challenging regulatory environment under the Trump administration, which recently eliminated a $7,500 tax credit for the purchase of an EV. The company lost $1.1 billion in the second quarter. 

To continue Finlay’s reporting, Boeing Defense workers voted Sunday to reject the company’s latest contract offer. The decision will extend the workers’ three-month strike, which has disrupted one of the company’s main manufacturing hubs. The offer, which would have covered a five-year period and seen an average wage increase of 24% for workers, was largely the same as previous ones. “Boeing claimed they listened to their employees – the result of today’s vote proves they have not,” International Association of Machinists and Aerospace Workers Union International President Brian Bryant said in a statement following the vote. Boeing Vice President Dan Gillian characterized the offer as “market-leading” and said the firm will not increase the overall value of its terms. Boeing continues to refuse to consider the offer approved by the union. The union recently filed a complaint with the National Labor Relations Board accusing Boeing of bargaining in bad faith. 

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