General Motors Announces Over 1,000 Layoffs in Software and Service Units

General Motors (GM) has announced plans to lay off more than 1,000 salaried employees worldwide as part of a broader strategic effort to streamline its operations and prioritize investments in electric vehicles (EVs) and subscription-based services.

The layoffs will affect GM’s software and service units globally, with around half of the cuts occurring in the United States. About 600 positions will be eliminated at GM’s tech campus near Detroit.

Reasons Behind the Decision:

GM clarified that these job cuts are not merely a cost-cutting measure. Instead, they result from a thorough review of the company’s operations following Mike Abbott’s departure in March 2024, the former Executive Vice President of Software and Services.

Abbott, a former Apple executive, was brought on in 2023 to lead GM’s software development as the company ramped up its investment in EVs and technology-driven services.

Focus on Future Growth:

In a statement, GM emphasized the importance of simplifying operations to achieve “speed and excellence.” The company is making bold choices to prioritize investments that will significantly impact its future growth. This includes enhancing its EV offerings and expanding subscription-based services.

Previous Cost-Cutting Efforts:

This recent wave of layoffs follows GM’s earlier cost-cutting efforts. In April 2023, the automaker announced that about 5,000 salaried workers had taken buyouts to meet a $2 billion cost-cutting target. This followed a reduction in executive-level and salaried jobs in February 2023.