General Motors, the American automotive giant, is reportedly cutting 1,000 jobs from its software and service divisions globally, according to Reuters.
General Motors (GM), the American automotive giant, is laying off 1,000 employees from its software and service units worldwide, according to a Reuters report on Monday, August 20.
In an official statement cited in the report, GM explained, “As we build GM’s future, we must simplify for speed and excellence, make bold choices, and prioritize the investments that will have the greatest impact.” The news was first reported by CNBC.
The layoffs are affecting nearly 600 employees at GM’s tech campus near Detroit, Michigan, accounting for nearly half of the job cuts in the United States.
According to the company, these layoffs are not driven by cost-cutting measures but are a result of a comprehensive review of operations following the departure of Mike Abbott, the executive vice president of software and services, who left GM in March due to health reasons. Abbott, a former Apple executive, had joined GM in 2023 to lead its software development efforts amidst significant investments in electric vehicles and subscription services.
In April 2023, GM offered buyouts to nearly 5,000 salaried workers as part of a broader effort to achieve a $2 billion cost reduction target. This followed the company’s decision to reduce hundreds of executive and salaried positions in February 2023.
The 1,000 layoffs represent approximately 1.3% of GM’s global workforce. As of the end of 2023, GM had close to 76,000 employees worldwide, including 53,000 in the U.S. However, GM’s website lists 95,000 employees and 156 facilities in the U.S.
