General Motors (GM) has announced the layoff of more than 1,000 salaried employees in its software and services division as the automaker seeks to streamline operations and prioritize investments in emerging technologies. The layoffs, which include approximately 600 positions at GM's tech campus near Detroit, are part of a broader strategic review following leadership changes within the division earlier this year.
The cuts represent roughly 1.3% of GM's global salaried workforce, which stood at 76,000 as of the end of last year. The decision underscores the challenges facing traditional automakers as they navigate the transition to electric vehicles (EVs) and increasingly software-driven vehicles, all while managing costs in a competitive industry.
"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," a GM spokesperson said in a statement. The company emphasized that the layoffs were not solely about cost-cutting but rather a necessary step to align the organization with its long-term goals.
The software and services division, a critical component of GM's future strategy, covers a broad spectrum of areas including infotainment systems, the OnStar brand, and emerging opportunities such as subscription services and advanced vehicle features. The division has been at the center of GM's push to generate recurring revenue streams, particularly through software-defined vehicles.
The layoffs come just months after significant leadership changes in the division. In May 2023, GM appointed Mike Abbott, a former Apple executive, as its first executive vice president of software. However, Abbott left the company in March 2024 due to health reasons, prompting a reorganization of the leadership team. His role was subsequently split between two GM executives: Baris Cetinok and Dave Richardson.
Cetinok, who serves as senior vice president of software and services product management, program management, and design, is now responsible for overseeing GM's software roadmap and the development process for new software programs. Meanwhile, Richardson, as senior vice president of software and services engineering, leads software engineering efforts across embedded platforms, digital products, and advanced driver-assistance systems, such as GM's Super Cruise.
Despite the layoffs, GM remains committed to its vision of a software-driven future. The company has been investing heavily in electric vehicles and related technologies, aiming to become a leader in the EV market. The ability to monetize software through subscriptions and other services is seen as a key part of this strategy, offering a potential boost to GM's profitability.
The decision to lay off more than 1,000 employees, however, reflects the challenges GM faces as it attempts to balance these ambitious goals with the need to remain competitive in a rapidly changing industry. The cuts also follow a series of cost-cutting measures implemented by GM in recent years. In April 2023, approximately 5,000 salaried workers took buyouts as part of GM's effort to meet a $2 billion cost-reduction target. This came on the heels of earlier reductions, including the elimination of hundreds of executive-level and salaried positions in February 2023.
