General motors to lay off over 1,000 employees in software and services division

Detroit: General Motors (GM) is laying off more than 1,000 salaried employees globally within its software and services division as part of a strategic move to streamline operations, CNBC reports. The layoffs include approximately 600 positions at GM's technology campus near Detroit and come less than six months after a leadership transition in the division.

The company made these cuts following a review aimed at accelerating decision-making, improving efficiency, and prioritising high-impact investments. A GM spokesperson confirmed the layoffs, stating, "As we build GM’s future, we must simplify for speed and excellence, make bold choices, and prioritise the investments that will have the greatest impact." However, GM did not disclose the exact number of layoffs.

An anonymous source familiar with the situation revealed that the layoffs affect more than 1,000 salaried employees, representing about 1.3 percent of GM's global salaried workforce, which totaled 76,000 at the end of last year. This included approximately 53,000 salaried employees in the U.S.

The cuts come amid rising concerns of an industry downturn, prompting automakers to reduce costs while investing billions into emerging markets like electric vehicles and software-defined vehicles. Software has become a key focus for GM as the company seeks to boost profits through recurring revenue opportunities such as subscriptions.

The software and services division is responsible for a range of areas, including infotainment, the OnStar brand, and emerging vehicle features. The division is now under the leadership of two executives, Baris Cetinok and Dave Richardson, who took over after former Apple executive Mike Abbott stepped down in March due to health reasons.

Cetinok, a seasoned software executive, oversees product management, program management, and design for GM’s software roadmap, while Richardson leads software engineering, covering embedded platforms, digital products, and advanced driver-assistance systems such as GM’s Super Cruise. Both executives are based at GM's Mountain View Technical Center in California.