General Motors (GM) is set to reduce its global workforce by more than 1,000 salaried employees, primarily within its software and services division. This decision is part of the company’s effort to streamline operations and enhance efficiency amid an evolving automotive landscape.
The layoffs will impact around 600 positions at GM’s tech campus near Detroit, with the remaining reductions distributed across other locations. The decision comes less than six months after a significant leadership shake-up, including the departure of former Apple executive Mike Abbott, who left GM in March due to health issues. Abbott had been appointed as GM’s first executive vice president of software in May 2023, and his departure led to the appointment of Baris Cetinok and Dave Richardson as his successors.
The layoffs represent approximately 1.3% of GM’s global salaried workforce, which totaled 76,000 employees at the end of the previous year. This includes about 53,000 salaried employees based in the United States. Employees affected by the layoffs were notified on Monday morning.
The reductions are part of a broader trend within the automotive industry as companies grapple with the costs and uncertainties associated with a potential downturn. Automakers are increasingly focusing on reducing expenses and headcount while investing heavily in emerging technologies, such as all-electric vehicles and software-defined cars. GM’s decision reflects this industry-wide shift as the company seeks to optimize its operations and redirect resources to areas with high growth potential.
GM’s software and services division encompasses a range of functions, including infotainment systems, the OnStar brand, and innovative features such as subscription services. As GM intensifies its focus on monetizing software and exploring new revenue opportunities, the company aims to position itself as a leader in these evolving markets.
The company’s new leadership team includes Baris Cetinok and Dave Richardson, who are now responsible for overseeing the software division. Cetinok, a seasoned software executive, serves as the senior vice president of software and services product management, program management, and design. He is tasked with guiding GM’s software roadmap and managing the development, launch, and improvement of software programs. Richardson, who holds the position of senior vice president of software and services engineering, leads efforts in software engineering across various areas, including embedded platforms, digital products, commercial solutions, and advanced driver-assistance systems like GM’s Super Cruise.
These strategic changes reflect GM’s commitment to refining its operations and focusing on high-impact investments. By streamlining its software and services division, GM aims to enhance its ability to adapt to the rapidly changing automotive landscape and drive future growth.
As GM continues to navigate these transitions, the company remains dedicated to leveraging its technological advancements to lead in the automotive industry.
