(RTTNews) - Auto major General Motors Co. is laying off more than 1,000 salaried employees in its software and services division across the world, mostly in the U.S., with a view to streamlining its operations, reports said.
In the proposed layoffs of software engineers, more than 600 will be at GM's tech campus in Michigan. The job cuts represent about 1.3 percent of GM's global salaried workforce of 76,000 as of the end of last year, in which about 53,000 employees were in the U.S.
The move follows a review of the unit after David Richardson and Baris Cetinok, former Apple Inc. executives, were promoted to head its Software and Services organization since June as the company advances in electric, autonomous and connected vehicles. The former technology executives took over for Mike Abbott, who left GM in March 2024 due to health reasons.
The impacted employees at the company were notified Monday morning, the reports noted.
CNBC quoted a GM spokesman as saying, "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. As a result, 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."
Last week, Bloomberg reported citing people familiar with the matter that GM had begun reducing its workforce in China and would soon convene with its local partner, SAIC, to discuss a major structural overhaul of its operations in the region. The move reflected the automaker's acknowledgment that it was unlikely to achieve the peak sales figures it reached in 2017.
The automaker, in its second quarter, had delivered 696,086 vehicles in the U.S., up 0.6 percent year-over-year. Quarterly EV sales were 21,930 units up 40 percent from last year.
