The layoffs account for 1.6 percent of the company’s total salaried workforce.
General Motors is cutting over 1,000 salaried positions worldwide, following a review aimed at streamlining operations, according to a CNBC report published on Monday.
“As we shape GM’s future, we need to simplify processes for speed and excellence, make bold decisions, and focus on the investments with the greatest impact,” a GM spokesperson told CNBC. “This has led to the reduction of certain teams within the Software and Services organization. We appreciate those who helped build a strong foundation that positions GM for future leadership.”
Although GM didn’t disclose the exact number of layoffs, a source familiar with the situation told CNBC that approximately 600 of the affected employees are from GM’s technology campus in Warren, Michigan, near Detroit. The cuts represent about 1.3 percent of GM’s 76,000 salaried employees, with around 53,000 based in the U.S.
The layoffs occur at a time when software is becoming a key feature of the automotive experience. Touchscreens, infotainment systems, and advanced safety features are now major selling points for consumers seeking cutting-edge technology in their vehicles. Companies like GM have invested billions in attempts to profit from these features, often through subscription services.
GM recently made a controversial move by eliminating Apple CarPlay and Android Auto from its electric vehicles, opting instead for in-house software developed with Google. The company claims this will reduce distractions and enhance the user experience. This type of integration also facilitates the sale of subscription services, opening up new revenue streams.
