A General Motors sign is seen during an event on January 25, 2022 in Lansing, Michigan. – General Motors will create 4,000 new jobs and retain 1,000 and significantly increase battery cell and electric truck manufacturing capacity.
Jeff Kowalsky | AFP | Getty Images
DETROIT — General Motors is laying off more than 1,000 salaried employees worldwide in its software and services division following a review to streamline the unit’s operations, according to CNBC.
The layoffs, including about 600 jobs at GM’s technology campus near Detroit, come less than six months after leadership changes overseeing operations, including former Apple executive Mike Abbott leaving the automaker after less than a time in March for health reasons.
“As we build GM’s future, we must simplify speed and excellence, make bold choices and prioritize investments that will have the greatest impact,” a GM spokesman said in an emailed statement. “As a result, we are reducing some teams within the Software and Services organization. We are grateful to those who have helped build a strong foundation that positions GM to lead forward.”
GM declined to disclose the full number of layoffs, but a source familiar with the matter, who declined to be identified because the information is private, confirmed that more than 1,000 workers will be laid off, including 600 in Warren, Michigan. Affected employees were notified Monday morning.
The layoffs represent about 1.3% of the company’s global total salaried workforce 76,000 since the end of last year. This included approximately 53,000 American wage earners.
The cuts come as automakers try to cut costs and, in many cases, the number of workers amid fears of an industry downturn — and as they spend billions of dollars on emerging markets such as fully electric vehicles and so-called self-driving vehicles. software.
Software, specifically monetizing it, has been a big focus for automakers, including GM, as it looks at recurring revenue opportunities like subscriptions to boost profits.
The software and services division covers a wide variety of areas for the automotive industry, including infotainment, the OnStar brand, and emerging areas such as subscriptions and other vehicle features and development.
Two GM executives — Baris Cetinok and Dave Richardson — succeeded Abbott, who was named GM’s first executive vice president of software in May 2023. They are based at GM’s Mountain View Technical Center in California.
Cetinok, a veteran software executive, serves as senior vice president of software product and service management, program management and design. He oversees the teams responsible for designing GM’s software roadmap and the process of developing, launching and enhancing software programs.
Richardson, GM’s senior vice president of software engineering and services, leads software engineering, including areas such as embedded platforms, digital products, commercial solutions and advanced driver assistance systems such as GM’s Super Cruise.
