General Motors (GM) is cutting over 1,000 salaried jobs globally in its software and services division after reviewing its operations. The layoffs include around 600 positions at GM’s tech campus in Michigan, and they follow leadership changes that took place earlier this year.
Mike Abbott, a former Apple executive who was hired as GM’s first executive vice president of software in 2023, left the company in March due to health reasons after less than a year. The cuts aim to streamline the division as GM refines its future strategy.
The company’s decision to reduce its workforce is part of a broader effort to simplify operations and focus on key investments. In a statement, GM emphasized the importance of making bold choices to accelerate progress and deliver excellence.
While GM declined to provide exact figures, a source confirmed that more than 1,000 employees were impacted, with Michigan being significantly affected. Employees were notified of the layoffs on Monday.
The layoffs represent a small portion of GM’s global salaried workforce, which numbered 76,000 employees at the end of 2022. The automaker, like others in the industry, is navigating cost pressures and concerns about an economic slowdown.
Simultaneously, GM is making significant financial commitments to emerging areas, such as electric vehicles (EVs) and software-driven vehicle systems, which require substantial investment.
Software has become a crucial part of GM’s strategy as it aims to generate recurring revenue through subscriptions and other services.
The software and services division encompasses infotainment systems, GM’s OnStar brand, and new areas like vehicle subscriptions and software-enabled features. These services are increasingly viewed as key profit drivers for automakers, who are shifting toward digital revenue models.
Leadership of the software and services division has now transitioned to Baris Cetinok and Dave Richardson. Cetinok, a veteran in software product management, oversees GM’s software roadmap and development processes, while Richardson leads the engineering of software systems, including GM’s advanced driver-assistance platform, Super Cruise.
Both executives operate from GM’s California-based Mountain View Technical Center, guiding the company’s future software initiatives.
