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 production capacity for battery cells and electric trucks.
Jeff Kowalski AFP Getty Images
DETROIT – General Motors has laid off more than 1,000 salaried employees globally in its software and services division following a review to streamline the unit’s operations, CNBC has learned.
The layoffs, including about 600 jobs at GM’s technology campus near Detroit, come less than six months after a leadership shakeup overseeing the operation, including former Apple executive Mike Abbott leaving the automaker after less than a year in March for health reasons.
“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 certain teams in our Software and Services organization. We are grateful to those who helped build the strong foundation that has allowed GM to move forward.”
GM declined to disclose the full number of layoffs, but a source familiar with the matter did, who declined to be named because the information is private., confirmed more than 1,000 salaried employees will be laid off, including 600 in Warren, Michigan. Affected employees were notified Monday morning.
The layoffs represented about 1.3% of the company’s global payroll workforce of 76,000 at the end of last year. That includes about 53,000 U.S. payroll employees.
The cuts come as automakers try to cut costs and, in many cases, the number of employees amid fears of an industry slowdown — and as they spend billions of dollars on emerging markets such as all-electric vehicles and so-called software-defined vehicles. .
Software, specifically for monetization, has become a key focus for automakers, including GM, as they look to ongoing revenue opportunities such as subscriptions to boost profits.
The software and services division covers various areas for automakers, 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 – succeed 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 team responsible for the design of GM’s software roadmap and the software program development, launch and improvement process.
Richardson, GM senior vice president of software and services engineering, leads software engineering, including areas such as embedded platforms, digital products, commercial solutions and advanced driver assistance systems such as GM Super Cruise.
