AI Layoff Deception, GM’s Earnings Dip & Truck Refresh, California Tech Apprenticeships

Episode #1101: Today we talk about how AI is quietly reshaping the workforce under the guise of “restructuring.” GM reports a profit dip but revs up electrified truck updates to meet shifting demands. Finally, California launches an innovative apprenticeship program to tackle the auto tech shortage head-on.

• GM’s Q2 net income fell 35%, hit by $1.1 billion in tariffs, but the company holds firm on full-year profit goals. CEO Mary Barra highlights strategic moves to align with consumer demand. Meanwhile, GMC is updating its trucks and SUVs with plug-in hybrids arriving in 2027 and EV redesigns planned.
  • Q2 revenue dropped 1.8% to $47.1 billion; North American pretax profit down 46%.
  • Tariffs expected to cut profits by $4-$5 billion this year.
  • GMC’s Sierra and Yukon will add plug-in hybrids in 2027, with EV Sierra redesign in 2028.
  • Hummer EV and other models due for updates through 2029.
  • Barra: “We’ll emerge from this transition stronger and more profitable than before.”
    
    
    
• California dealers are tackling the nationwide shortage of skilled auto techs with a new apprenticeship program. The initiative lets aspiring technicians learn on the job without upfront costs, offering wages, tools, and a U.S. Department of Labor certification after two years.
  • CNCDA reports 400,000 tech job openings nationwide; California alone needs 5,000 more.
  • The shift to EVs and retiring experienced techs are worsening the shortage.
  • Apprenticeship pays a fair wage, requires no tuition, and includes e-learning tools.
  • Open to anyone, especially those 18-30 without college degrees, aiming to avoid student debt.
  • “This program offers a practical path to a lucrative career without the burden of traditional schooling,” said CNCDA representatives.

• While companies rarely admit it publicly, AI technology is increasingly driving workforce reductions disguised as restructuring or optimization. Early layoffs have targeted 1099 freelancers, especially in content and creative roles, HR, and Customer Service as firms cautiously phase in AI tools before affecting full-time employees.
  • IBM and Klarna have been among the few transparent about AI replacing some jobs despite overall growth.
  • Companies often use euphemisms like “restructuring,” “reorganization,” “optimization,” and “business efficiency” to mask AI-driven job cuts and avoid backlash.
  • When AI falls short, companies often outsource work globally instead of rehiring domestically.
  • “AI might automate 70% to 90% of a process, but the last mile still needs the human touch, especiall

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Transcript

Paul J Daly: 0:00

Good morning, Tuesday, July 22 this is the automotive State of the Union. I'm Paul Jay Daly. Just call him out here today. We're talking about a eyes, layoff, deception, GM earnings and some new drive trains, as well as fun story, a rare positive story to come out of Jalopnik.

Kyle Mountsier: 0:18

A rare positive Jalopnik story. Call them and congratulate I

Paul J Daly: 0:22

should it feels like they've been hanging around with some of our people. It's rubbing off. That's good. I know, I know. I mean, look, we got a quick shot show today, but it's always good to just think about the positive things. Think about the positive. I mean, a lot of people have to think about the positive. GM is trying to get us to think about the positive as their q2 net income fell 35% hit by a $1.1 billion tariff bill. But the only the company holds firm on their full year profit goals, CEO Mary Barra highlighting strategic moves to align with consumer demand. Meanwhile, GMC is updating its trucks and SUVs with plug in hybrids arriving in 2027 we've been asking about this forever. It's the first information so basically cute to revenue dropped 1.8% to 47 point 1 billion. Tariffs expected to cut profits by four to 5 billion this year, which is what they said last report. And they're saying that's holding steady. That's holding staying about the same. And then the kind of the second tail end of the story is the fact that the GMC Sierra and UConn are going to be adding, drum roll please. They've been Toyota plug in hybrids in 2027 with the EV Sierra. That the full EV truck, which is kind of like my favorite car right now, they're gonna fully redesign that in 2028 the Hummer and Ev and other models are due for updates too, but Mary Barra said, we're going to emerge from this transition stronger and more profitable than ever. So leaning in on their agility and their understanding of their numbers, I guess. Well,

Kyle Mountsier: 1:52

look, the hybrids and the plug in hybrids are going to be profitable, profitable models because the technology is it's a it's a slower walk for for all these manufacturers and and, and even, man, I just, I wonder what could have been if three years ago, everybody went down this path, that this was the path, would we actually be closer to EV adoption? Yeah, we have started. Probably an easy yes, we probably have. Would have walked it a lot quicker.

Paul J Daly: 2:19

Yeah, just Toyota, they were saying this, right? Yeah, everybody just got caught up in the hype of the moment. But, I mean, the thought of having, like, a big Yukon and, you know, like the Escalades right along with it, any other big truck, having one with that has a good, good torque and good power, and then has that. Can

Kyle Mountsier: 2:35

you imagine 100 mile range, seven, 800 mile ranges,

Paul J Daly: 2:39

it's gonna happen. Oh, and I think that's what people want, especially, what was the vehicle yesterday? We're saying we go like, 140 miles on plug. It only was it a Ford,

Kyle Mountsier: 2:46

yeah? It was a Yeah, Ford, Bronco. So

Paul J Daly: 2:53

this is going to be like, I love that. You can go back years and hear us saying it. I think a lot of rational people were saying it the hybrid, the plug in hybrid. This is the middle step to EV adoption, and now we're getting there. I feel like this is going to be one that sticks right. The hype train is gone. I think this will be substantive. I can't wait to drive one. I'll probably end up owning one, because I like the big trucks. Yeah. I mean, a plug in hybrid would be pretty dope.

Kyle Mountsier: 3:19

And when you get in 35 miles to the gallon on the truck. Why not go for it? You know, I've

Paul J Daly: 3:24

been in like, ridiculous territory for so long, like it's just the land There's there was nothing worse than the Land Cruiser, by the way. I think it was 12 gallons a mile. Oh my, that one. It was like backwards. So bad.

Kyle Mountsier: 3:38

They missed it. Paul, if they missed it, they missed it. They missed it. Speaking of not miss though, oh, let's go. Sorry.

Paul J Daly: 3:47

Our friends out in California, California dealers are tackling the nationwide shortage of skilled auto techs with a new apprenticeship program. Initiative is letting aspiring techs learn on the job without any upfront costs, while getting paid, while getting tools and getting a US Department of Labor Certification. So the program had got the certification after, just to wait, what is I'm trying to think, you don't get a tech certification after two years from the US Department of Labor after I have to check into the story, who's getting a certified I don't know, but basically California New Car Dealer Association, our friends there, Brian Maz, all our good friends, cncda, they're saying there are 400,000 tech job openings nationwide. California alone needs over 5000 right now, and the shift to EVs retiree experience techs are just worsening the shortage. So the apprenticeship pays a fair wage, requires no tuition, and includes all the E learning tools necessary open to anyone, especially those 18 to 30 years old without college degrees, aiming to avoid student debt. I mean, this is such a winning situation. Cncda reps said, quote, This program offers a practical path. Us to a lucrative career without the burden of traditional schooling. Sign me up. Yeah, this is sort of great, huge for me. First of all, like kudos to anyone trying to solve the technician shortage right now. I just think when you look at

Kyle Mountsier: 5:15

the problem is the education of what being a technician looks like now, right? The brand of it, basically, and you got oil changes and all this type of stuff. But like, you're a computer scientist at the same time, like you were with high tech, especially when you look at EVs, so there's, there's no reason why we shouldn't be attracting a totally new group of of of workers into this workforce. I did just look it up. Yeah, it's a Department of Labor Certification after two years. So some of this is for like, like, immigrants and people that are seeking the certification of the ability to work. So pretty

Paul J Daly: 5:56

cool. Yeah. What a path go California. What a path I know. Yeah. Speaking of what a path

Kyle Mountsier: 6:02

segue, this is not surprising. This next one autos making jobs and the rest of the world's trying to destroy it while, while companies rarely admit it publicly, AI technology is slowly and increasingly driving workforce reductions. Early layoffs have targeted specifically 1099, freelancers and content and the creative roles, even even getting into full time employees. Now, obviously HR and customer service firms are recommending a lot of cautiousness when bringing in AI tools. IBM and Klarna have been among the few transparent about AI replacing some jobs despite overall growth. So they're actually saying this is very transparent. Other companies are just like doing the old normal, like, we're just restructuring, oh, it's some optimization, even though, when you look deeper, there's a lot of AI focus in those companies. Taylor Goucher, VP of Sales and Marketing at Connects global, said, AI might automate 70 to 90% of a process, but the last mile still needs the human touch, especially for quality assurance judgment calls and edge cases, which we've been talking a

Paul J Daly: 7:13

lot about, without a doubt, but I do think that this is it's really a PR play, because it's not really great publicly To be like, we're cutting jobs, replacing them with robots, right? Like, no company wants to say that. So it does make sense that they're restructuring. But when you look at the profit and loss sheets, when you look that like the companies are doing okay, they're just seeing the opportunity to optimize. And one of the other nuances to this story is like, some companies are cutting so far, right? They're like, we're cutting 100% of this area of jobs, replacing it with AI, and then they realize, well, they realize it doesn't work that way, and it can't work that way. However, when they ramp back up, they're actually outsourcing the ramp up overseas. So it's like, because, like, the efficiency is winning. So this is going to be more and more of a topic. I think it's totally unavoidable. When I think about our auto industry. I think about the tech companies. I think about all the dealerships out there, like just being really smart about implementing AI processes and systems. Now, the companies in automotive is growing. The segment overall is growing. So we're not forced with the same you know, maybe the larger companies are forced with this right to try to stay competitive against the strong, more nimble companies who, like you have a tech company coming up now. They're building something with like six people that used to need like 36 to build, and the legacy companies still have 36 people like working on it. So I think larger companies in our industry might be faced with this first. However, like, you know, we've seen strategies where, like, some companies are just managing churn. Klarna is one of the ones that did that, right? They said, Well, we haven't fired anybody. We just let natural attrition run its course. And we they cut, I think they went down from like 5000 people to 3000

Kyle Mountsier: 8:49

to 3000 Yep, yeah. I mean, you know, you listen to Steve Greenfield at ASOTU Con this year just talking about how many roles are going to be cut across even retail. And a lot of people would say, well, retail is human to human. To Human. There's still so many roles that can cut them down. So we'll see.

Paul J Daly: 9:06

We saw how much of this robot we saw, the Optimus robot, serving popcorn, serving popcorn. That's about all I can do, fam. That's messed up. On that note, I think we've done enough damage for today. We hope you gave you a little pep in your step. But the bottom line is, you're a human. You're watching the show. You're human. You do human things. So go out there. Care about the other humans. Now, guess what? Your job is going to be super safe. You.