General Motors (GM) is set to lay off more than 1,000 employees from its software and services division as part of a restructuring effort aimed at streamlining its operations.
This reduction will affect approximately 600 positions at GM’s technology facility near Detroit and comes less than six months after leadership changes, including the departure of former Apple executive Mike Abbott due to health reasons.
A GM spokesperson stated in an email that the company is focusing on accelerating and simplifying its operations to prepare for the future. This approach involves making bold decisions and prioritizing investments that will have the most significant impact on performance, which has led to the reduction of certain teams.
Although GM has not disclosed the total number of positions being eliminated, sources familiar with the matter have confirmed that more than 1,000 employees will be affected, including 600 in Warren, Michigan. Those impacted were informed of their layoff on Monday morning.
This reduction represents about 1.3% of GM’s global workforce of 76,000 employees as of the end of last year. Of this total, 53,000 employees are based in the United States.
The layoffs come at a time when automakers are working to cut costs and, in many cases, reduce their workforce due to concerns about a downturn in the industry. Companies are investing billions of dollars in transitioning to fully electric vehicles and software-defined cars.
