General Motors signage is seen during an event in Lansing, Michigan, Jan. 25, 2022. — General Motors will create 4,000 new jobs and retain 1,000, significantly expanding its manufacturing capacity for battery cells and electric trucks.
Jeff Kowalski | AFP | Getty Images
Detroit — General Motors According to a CNBC report, the company plans to lay off more than 1,000 full-time employees worldwide as part of a streamlining effort across its software and services divisions.
The cuts, which include about 600 jobs at GM’s technology campus near Detroit, come less than six months after a leadership shakeup at the company that saw former Apple executive Mike Abbott leave in March for health reasons after less than a year at the company.
“As we build GM’s future, we must simplify for speed and excellence, make bold choices and prioritize investments that will have the greatest impact,” a GM spokesperson said in an emailed statement. “As a result, we are reducing some teams within our Software and Services divisions. We thank those who have helped build a strong foundation for GM’s leadership in the future.”
GM declined to disclose the number of layoffs, but the person, who declined to be named because the information is private, said, The company confirmed that more than 1,000 salaried employees would be laid off, including 600 in its Warren, Mich., location. Affected employees were notified Monday morning.
The layoffs represent about 1.3% of the company’s 76,000 full-time employees worldwide as of the end of last year, including about 53,000 full-time employees in the United States.
The cuts come as automakers try to cut costs and in many cases employee headcount amid concerns about an industry downturn, and as they spend billions of dollars on emerging markets such as all-electric cars and so-called software-defined vehicles.
Software, and especially how to monetize it, has become a big focus for automakers, including GM, as they focus on increasing margins with recurring revenue opportunities such as subscriptions.
The software and services division covers various areas for the automaker, including infotainment, the OnStar brand and emerging areas such as subscriptions and other vehicle features and developments.
Two GM executives, Baris Chetinok and Dave Richardson, will succeed Abbott, who was named GM’s first executive vice president of software in May 2023. The two will be based at GM’s Mountain View Technical Center in California.
A veteran software executive, Cetinok serves as senior vice president of software and services product management, program management and design. He oversees the teams responsible for designing GM’s software roadmap and the process of developing, releasing and improving software programs.
As GM’s senior vice president of software and services engineering, Richardson leads software engineering, including areas such as embedded platforms, digital products, commercial solutions and advanced driver-assistance systems such as GM’s Super Cruise.
