An electric machine includes a rotor structure disposed within a motor housing, wherein a second rotor end has a plurality of axially stacked laminations. The electric machine further includes a motor position sensor system which includes a first plurality of cutouts defined in the plurality of axially stacked laminations, wherein the first plurality of cutouts have a progressively smaller cross-sectional area at each lamination. The motor position sensor system also includes a second plurality of cutouts defined in the plurality of axially stacked laminations, wherein the second plurality of cutouts have a progressively smaller cross-sectional area at each lamination. The motor position sensor system further includes a plurality of motor sensors axially spaced from the second rotor end, and a plurality of sensor magnets axially spaced from the second rotor end and the plurality of motor sensors.