General Motors Company (GM) is reportedly axing more than 1,000 workers in its Software and Services unit across the world. Based on CNBC information, the company’s decision follows a streamlining review of this division.
GM Axing Over 1,000 Software And Services Unit Positions Globally
These layoffs allegedly include approximately 600 positions at the company’s tech campus near Detroit. The dismissals follow hot on the heels of GM executive changes in operations.
This includes the appointment of Mike Abbott, a former Apple Inc. (AAPL) executive, who, citing health reasons, resigned from GM in March 2024 after less than a year at the company. Appointed in May 2023, Abbott was the first GM executive vice president of software. Baris Cetinok and Dave Richardson jointly stepped into his shoes.
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According to the CNBC report, GM declined to pinpoint the exact number of layoffs. However, a source familiar with the matter indicated that this move affects more than 1,000 salaried employees. This is roughly 1.3% of GM’s 76,000 global workforce, which includes 53,000 US workers. A spokesperson for the firm commented:
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. As a result, we’re reducing certain teams within the Software and Services organization. We are grateful to those who helped establish a strong foundation that positions GM to lead moving forward.
GM, like others in the motor vehicle industry, is shifting its focus to software-based and electric vehicles in an attempt to generate recurring revenues through subscriptions.
