A General Motors sign is seen during an event on January 25, 2022 in Lansing, Michigan. – General Motors will create 4,000 new jobs and retain 1,000, and significantly increase manufacturing capacity for battery cells and electric trucks.
Jeff Kowalsky | AFP | Getty Images
DETROIT — General Motors is laying off more than 1,000 salaried employees globally in its software and services division following an overhaul to streamline the unit's operations, CNBC has learned.
The layoffs, including about 600 jobs at GM's technology campus near Detroit, come less than six months after leadership changes overseeing operations, including former Apple executive Mike Abbott leaving the automaker after less than a year in March due to health reasons.
“As we build GM's future, we must simplify for speed and excellence, make bold decisions and prioritize investments that will have the greatest impact,” a GM spokesperson said in an emailed statement. “As a result, we are 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 the future.”
GM declined to disclose the total number of layoffs, but a source familiar with the matter confirmed that more than 1,000 salaried employees would be laid off, including 600 in Warren, Michigan. The affected employees were notified Monday morning.
The layoffs represent about 1.3 percent of the company's global workforce of 76,000 salaried employees at the end of last year. Among them, about 53,000 salaried employees in the United States.
The cuts come as automakers try to cut costs and, in many cases, staff amid fears of an industry slowdown, and as they spend billions of dollars on emerging markets such as all-electric vehicles and so-called “software-defined vehicles.”
Software, specifically its monetization, has been a major focus for automakers, including GM, as they look for recurring revenue opportunities, such as subscriptions, to boost profits.
The software and services division covers a wide variety of areas for the automaker, including infotainment, its OnStar brand and emerging areas such as subscriptions and other vehicle features and development.
Two GM executives, Baris Cetinok and Dave Richardson, replaced Abbott, who was named GM's first executive vice president of software in May 2023. They are based at GM's Mountain View Technical Center in California.
Cetinok, a veteran software industry executive, serves as senior vice president of software and services product management, program management and design. He oversees the teams responsible for GM’s software roadmap design and the process of developing, releasing and enhancing software programs.
Richardson, GM's senior vice president of software engineering and services, leads software engineering, including areas such as integrated platforms, digital products, business solutions and advanced driver-assistance systems such as GM's Super Cruise.
