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General Motors lays off over 1,000 software and services employees globally
Industry News- Aug 20,24
The reduction primarily targets teams which oversees vehicle infotainment, OnStar services, and GM's Super Cruise advanced driver-assist system.
General Motors (GM) has announced layoffs affecting more than 1,000 salaried employees globally within its software and services division. The job cuts, which include approximately 600 positions at GM's tech campus near Detroit, are part of an effort to streamline operations in this unit.
In a statement to CNBC, GM explained, "As we build GM's future, we must simplify idea execution, make bold choices, and prioritise investments with the greatest impact." These layoffs represent about 1.3% of GM's global salaried workforce of 76,000 as of the end of last year. Most of the job cuts will affect GM's U.S. operations.
"We are grateful to those who helped establish a strong foundation that positions GM to lead moving forward," the automaker stated, acknowledging the contributions of those affected by the layoffs. The reduction primarily targets teams within the software and services organisation, which oversees vehicle infotainment, OnStar services, and GM's Super Cruise advanced driver-assist system. This division is led by executives Baris Cetinok and Dave Richardson.
The layoffs come less than six months after leadership changes in the unit, including the departure of former Apple executive Mike Abbott in March due to health reasons. The cuts are part of GM's broader effort to reduce costs amid industry concerns over a potential downturn and the significant investments required for electric vehicles and software-defined vehicles.
Recently, GM has faced challenges with software issues in its new Chevy Blazer EV, including problems with infotainment screens and charging error messages. These issues led to a stop-sale notice last December, which was lifted in March.
The layoffs follow GM's cancellation of its 'Ultra Cruise' program in January, a competitor to Tesla's Full Self-Driving system. The company merged the Ultra Cruise team with its regular Super Cruise team. Despite the recent setbacks, GM remains committed to expanding its hands-free driving system, with plans to enhance its capabilities by the end of 2025.
(TOI)
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