Streamlining operations, General Motors (GM) has announced plans to lay off more than 1,000 salaried employees across its software and service units worldwide. This decision comes as part of the automaker’s ongoing efforts to align its operations with its future strategic goals.
The announcement, confirmed by GM after an initial report by CNBC, marks a bold step by the company to “simplify for speed and excellence, make bold choices, and prioritize investments that will have the greatest impact,” according to a statement from the automaker.
Approximately 600 of these job cuts will affect employees at GM’s technology campus near Detroit, with about half of the layoffs occurring in the United States. The company clarified that the layoffs are not driven by cost-cutting measures but stem from a comprehensive review of operations following the departure of Mike Abbott, the former Executive Vice President of Software and Services, who stepped down in March due to health reasons.
Abbott, who previously held an executive role at Apple, was brought on board in 2023 to lead GM’s software development initiatives amid the automaker’s increasing focus on electric vehicles and subscription-based services. His departure prompted a reevaluation of the company’s software and services strategy, ultimately leading to the current wave of layoffs.
This latest round of job cuts follows GM’s earlier efforts to reduce its workforce. In April 2023, the company revealed that around 5,000 salaried workers had accepted buyout offers as part of its strategy to achieve a $2 billion cost-cutting target. This came on the heels of previous reductions, including the elimination of hundreds of executive-level and salaried positions in February 2023.