General Motors (GM) has announced the layoff of more than 1,000 salaried employees globally, primarily in its software and services division. This decision is part of GM’s effort to streamline operations. Among the cuts, around 600 jobs are being reduced at the company's tech campus near Detroit.
“As we work towards GM's future, we need to simplify our processes for greater speed and effectiveness, make bold decisions, and focus on investments that will create the most significant impact,” GM stated in an announcement to Press.
The layoffs represent about 1.3% of GM’s global salaried workforce of 76,000 as of the end of last year, with the largest impact on the automaker’s U.S. operations. Employees affected by this decision were informed on Monday.
"We appreciate the efforts of those who helped build a strong foundation for GM's future," the company added.
Leadership Changes and Strategic Shifts The layoffs come just months after leadership changes within GM’s Software and Services division, led by executives Baris Cetinok and Dave Richardson. This division covers essential areas like vehicle infotainment systems, OnStar services, and GM's Super Cruise advanced driver-assist technology. The changes follow the departure of former Apple executive Mike Abbott in March due to health issues.
Software Challenges and Cost-Saving Measures These layoffs follow recent efforts by GM to reduce costs, prompted by concerns of a potential economic slowdown and increased investments in electric and software-defined vehicles. GM has encountered some technical challenges recently, particularly with software problems in the new Chevy Blazer EV, including blank infotainment screens and charging errors. These issues prompted a temporary stop-sale notice in December, which was lifted in March.
In addition to the layoffs, GM also cancelled its “Ultra Cruise” program, initially aimed at competing with Tesla's Full Self-Driving system, in January. The company has since merged this team with its existing Super Cruise project.
Despite these challenges, GM is still moving forward with plans to expand its hands-free driving system, aiming to enhance its capabilities by the end of 2025.
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