General Motors Reportedly Laying Off Over 1,000 People

General Motors is reportedly laying off over 1,000 people in salaried software and services positions.

At a Glance

GM has reportedly issued layoff notices to over 1,000 salaried workers globally.
600 employees at the GM Technical Center in Warren, Michigan, are affected.
The decision follows a review aimed at streamlining operations in the high-tech division.
GM’s commitment to transition to electric vehicles by 2035 remains steadfast.

Layoff Details and Scope

General Motors (GM) has reportedly issued layoff notices to over 1,000 salaried workers globally, primarily in its Software and Services division. The layoffs include around 600 employees based at the GM Technical Center in Warren, Michigan. The decision follows a comprehensive review of operations aimed at streamlining functions within GM’s high-tech division.

A GM spokesman explained that the company needs to simplify operations, make bold choices, and prioritize impactful investments. This led to the cutbacks in the Software and Services organization. The affected division includes vehicle infotainment, OnStar services, and the Super Cruise advanced driver-assist system. While the company did not confirm the number of layoffs, a person familiar with the matter is reported to have stated 1,000 workers would be let go.

GM lays off more than 1,000 salaried software and services employees https://t.co/HkDCqfhvxX

— NBC Nightly News with Lester Holt (@NBCNightlyNews) August 19, 2024

Market Influences and Competitive Landscape

These layoffs occur amid broader challenges in the automotive industry. Falling consumer demand for new vehicles and production adjustments by other automakers have influenced GM’s decision. Concurrently, Stellantis has reduced production at its Warren, Michigan, Truck Assembly Plant, phasing out one of its pickup models.

GM has been doubling down on its electric vehicle (EV) technologies, including significant investments in new manufacturing plants, joint ventures, and research centers. Despite recent market shifts, GM continues its transition to an all-electric portfolio by 2035, reaffirming this goal even in the face of declining demand for EVs.

Corporate Strategies and Executive Changes

Meanwhile, operational reviews and executive changes are part of a broader strategy to align with GM’s long-term goals. Mike Abbott, the former Executive Vice President of Software and Services, left his role in March due to health reasons but remains a senior advisor to GM CEO Mary Barra. The division is now led by Baris Cetinok and Dave Richardson, both former Apple executives.

Previous and Ongoing Cost-Cutting Measures

In April 2023, GM offered buyouts to 5,000 salaried workers as part of a $2 billion cost-cutting target. Despite these earlier efforts, the current round of layoffs is not attributed to direct cost-cutting or restructuring. Instead, it follows a strategic review launched after the departure of one of its key executives. As of December, GM had about 76,000 salaried employees, representing 46% of its workforce.

“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,” emphasized a GM spokesman in a statement to CNBC.

GM continues to make strides despite current market adversities. The company remains committed to presenting its Android-based infotainment as an alternative to Apple CarPlay and Android Auto. Simultaneously, it plans to expand the Super Cruise advanced driver-assist system by the end of 2025, maintaining a competitive edge against Ford’s BlueCruise, which recently expanded to Europe.