General Motors is laying off about 1,000 software employees worldwide as part of a strategic shift to focus on other initiatives, such as improving its Super Cruise driver-assistance system, enhancing its infotainment system and using artificial intelligence.
Most of the cuts will occur at GM's headquarters in Michigan, specifically at the GM Global Technical Center in Warren.
However, rather than emerging as a response to increased financial pressure, the change is being presented as one that will allow the carmaker to evolve in harmony with the wider sector.
General Motors moves toward software-defined vehicles
Interestingly, by laying off 1,000 software workers, GM plans to enter the changing landscape of software-defined vehicles. Company spokesman Stuart Fowle stressed that the layoffs are not related to cost cutting or individual performance.
The change comes after a series of challenges the automaker has faced with its software initiatives, including suspending sales of the new Chevrolet Blazer EV in late 2023 due to software glitches.
GM also recently promoted two former Apple executives to lead its software and services team, following the departure of Mike Abbott, another former Apple staffer.
In a statement, GM acknowledged the significance of the layoffs, saying: “As we build the future of GM, we must simplify for speed and excellence, make bold decisions and prioritize investments that will have the greatest impact. As a result, we are reducing certain teams within the Software and Services organization.”
TechRadar Pro GM was asked to share more context about its decision to cut software workers despite a clear need for more software expertise; the company did not immediately respond.
