General Motors (GM) is laying off over 1,000 salaried employees globally in its software and services division as part of a strategic move to streamline operations and focus on high-priority initiatives, as reported by CNBC and Bloomberg.
These layoffs include around 600 jobs at GM’s tech campus near Detroit, Michigan. The cuts represent about 1.3% of GM’s global salaried workforce, which was 76,000 employees at the end of last year.
The decision to reduce staff follows a review of GM’s software and services division, which oversees critical areas such as infotainment systems, OnStar services, and emerging technologies like advanced driver-assistance systems and AI. The layoffs are aimed at allowing GM to shift its focus toward enhancing its Super Cruise driver assistance system, improving the quality of its infotainment platform, and exploring AI applications that are expected to drive the future of “software-defined vehicles.”
These cuts come on the heels of leadership changes within the division. Mike Abbott, a former Apple executive, left his role as GM’s first executive vice president of software and services in March 2023 due to health reasons, less than a year after joining the company.
His responsibilities have been taken over by Baris Cetinok and Dave Richardson. Cetinok, now GM’s senior vice president of software and services product management, manages software roadmap design and program development. Richardson, GM’s senior vice president of software and services engineering, leads efforts in software engineering, including embedded platforms, digital products, and Super Cruise development.
Not a Cost-Cutting Measure
Despite the significant reduction in workforce, GM emphasizes that the layoffs are not a cost-cutting measure or a reflection of employee performance. Instead, they are intended to accelerate the company’s ability to innovate and compete in the evolving automotive industry. GM is focusing on delivering software features that matter most to consumers, rather than spreading resources across numerous projects.
The majority of the layoffs will occur in Michigan, with impacted employees being notified on Monday morning. GM expressed gratitude to those who contributed to laying the foundation for the company’s future in software, as it continues to prioritize speed, excellence, and impactful investments.
