GM Announces Layoffs in Software and Services Division
GM is laying off 1,000 employees from its software and services division
- Approximately 600 job losses are from the automaker’s tech campus near Detroit
- The layoffs represent a 1.3 percent reduction in GM’s total workforce
GM’s stock price may have grown in the first half of 2024, but the automaker is now facing layoffs in its software and services division. Around 1,000 salaried employees are being let go globally as GM aims to cut costs and streamline its operations.
Although GM has not officially confirmed the number of job losses, sources suggest that 600 of the layoffs are from the company’s technology campus near Detroit. This reduction in workforce amounts to a 1.3 percent decrease in GM’s global workforce, which currently stands at 76,000 employees.
GM stated that the layoffs are not solely about reducing costs, but rather a result of an operational review following the departure of software and services VP Mike Abbott. The company aims to simplify its operations and prioritize investments that will have the greatest impact.
Automakers, including GM, are looking to make savings to fund their transition to an electric future. GM has chosen to develop its own in-car software systems to generate additional revenue through subscription services. The company believes that subscriptions for features like streaming apps and driver assistance technology will be a lucrative source of income in the coming years.
Last year, GM announced plans to buy out 5,000 employees as part of its cost-cutting strategy. The automaker aims to reduce costs by $2 billion by the end of 2024.
