General Motors (GM) is laying off more than 1,000 salaried employees globally within its Software and Services division following a strategic review to streamline operations. The cuts include approximately 600 positions at GM’s tech campus near Detroit, Michigan. These layoffs, communicated to affected employees on Monday, represent about 1.3% of GM’s global salaried workforce of 76,000, including 53,000 in the U.S.
The decision comes less than six months after leadership changes within the division, which saw the departure of former Apple executive Mike Abbott in March due to health reasons. Abbott had been appointed as GM’s first executive vice president of software in May 2023. His role has since been succeeded by two GM executives, Baris Cetinok and Dave Richardson, who now oversee various aspects of the company’s software and services operations from GM’s Mountain View Technical Center in California.
A GM spokesperson explained that the layoffs are part of a broader strategy to simplify operations, prioritize impactful investments, and position the company for future growth. “As we build GM’s future, we must simplify for speed and excellence, make bold choices, and prioritize the investments that will have the greatest impact,” the spokesperson said in an emailed statement.
The layoffs reflect a broader trend among automakers to reduce costs amid concerns of an industry downturn, even as they invest heavily in emerging markets such as EVs and software-defined vehicles. GM has identified software, particularly monetizing it through recurring revenue opportunities like subscriptions, as a major focus area for boosting profits.
The Software and Services division encompasses various areas, including GM’s OnStar brand, infotainment systems, and emerging vehicle features and development technologies. Under Cetinok and Richardson’s leadership, the division will continue to focus on GM’s software roadmap, program development, and advanced driver-assistance systems like Super Cruise.
