General Motors announced that it will be laying off over 1,000 employees worldwide, primarily targeting salaried staff within the company’s Software and Services division. Approximately 600 of these cuts will affect employees at GM’s Global Technical Center in Warren, Michigan, near Detroit.
In an internal memo, a GM spokesperson explained, "As we build GM’s future, we must simplify for speed and excellence, make bold choices, and prioritize investments that will have the greatest impact. Consequently, 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."
This decision follows the recent departure of Mike Abbot, former vice president of GM’s first dedicated software division, who left the company due to health reasons. David Richardson and Baris Cetinok have since taken over his responsibilities. Richardson, vice president of software and services engineering, is responsible for software-defined vehicle development, software quality and testing, cloud platforms, IT, and advanced driver-assistance systems like Super Cruise. Cetinok oversees software and services product management, program management, and design.
These layoffs are part of GM's ongoing cost-cutting efforts over the past two years. In February 2023, the company eliminated hundreds of executive-level and salaried positions, followed by offering buyouts to around 5,000 additional salaried employees two months later.
GM currently employs a global salaried workforce of 76,000 people, with today’s layoffs representing 1.3 per cent of that total.