OAN Staff James Meyers
8:03 AM – Monday, August 19, 2024
General Motors is laying off more than 1,000 salaried employees globally in its software and services division following a review to streamline the unit’s operations, according to CNBC.
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GM confirmed the layoffs, saying in a statement that “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 layoffs include an estimated 600 jobs at GM’s tech campus close to Detroit, which comes less than six months after leadership changes overseeing the operations, including former Apple executive Mike Abbott leaving the company due to health reasons.
“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,” a GM spokesman said in an emailed statement. “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.”
In April 2023, GM announced close to 5,000 of its salaried workers took buyouts to leave the company to reach a $2 billion cost-cutting target after it cut hundreds of executive-level and salaried jobs in February 2023.
The layoffs represent 1.3% of the company’s global salaried workforce of 76,000 as of the end of 2023.
The latest round of layoffs come at a time when GM has spent billions on software to be placed int heir vehicles including touchscreens, infotainment systems, and active safety systems.
GM made the decision to get rid of Apple CarPlay and Android Auto from its electric vehicles, but instead offering in-house software developed by Google to help reduce distractions and provide a better user experience, according to the automaker.
The software and services decision covers a wide variety of areas for GM, including infotainment, its OnStar brand and emerging areas such as subscriptions and other vehicle features.
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