General Motors Announces Over 1,000 Job Cuts in Major Software Division Overhaul Around 600 cut roles are from GM's technology campus in Warren, Michigan.
By Erin Davis
Key Takeaways
- GM is streamlining its software and services division, resulting in layoffs of over 1,000 salaried employees globally.
- The layoffs follow leadership changes part of the company's efforts to prioritize investments and adapt for future industry demands.
General Motors (GM) announced layoffs of more than 1,000 salaried employees worldwide within its software and services division.
Around 600 cut roles are from GM's technology campus in Warren, Michigan. This comes after a series of leadership changes, including the departure of former Apple executive Mike Abbott due to health issues.
A GM spokesperson emphasized the necessity of the restructuring, stating it was critical to "simplify for speed and excellence, make bold choices, and prioritize investments that will have the greatest impact."
The layoffs were confirmed to the affected parties on Monday and represent about 1.3% of GM's global salaried workforce. The division undergoing the layoffs is responsible for various functions, including developing infotainment systems, the OnStar platform, and innovative subscription services.
The total number of cuts was not disclosed, per the Wall Street Journal.
As the industry anticipates potential downturns, the move aligns with a broader trend among automakers to manage costs while investing heavily in new market segments, like electric vehicles and advanced software integration, per CNBC.
