GM Layoffs: General Motors Looking To Slash Over 1,000 Jobs In Software And Services Division, Says Report

This decision comes less than six months after the firm implemented changes in its leadership and promoted former Apple Inc executives, David Richardson and Baris Cetinok, to senior VP positions

The report said that the exact number of layoffs was not revealed by the auto major, however, an anonymous source confirmed that over 1,000 individuals will be affected in the process. (Image Source: General Motors)

Source : General Motors

General Motors Co is planning to slash its workforce globally by more than 1,000 individuals, media reports said. The automaker is looking to lay off employees in its software and services division as it tries to cut down operational costs.

Majority of the layoffs, about 600, will be conducted at the tech campus of the company near Detroit, reported CNBC. This decision comes less than six months after the firm implemented some changes in its leadership and promoted former Apple Inc executives, David Richardson and Baris Cetinok, to senior vice president positions. Around the same time, Mike Abbott took an exit from the company citing health reasons.

Elaborating on the firings, the report cited an email from a spokesperson from the company and said, “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. As a result, we’re reducing certain teams within the Software and Services organization. We are grateful to those who helped establish a strong foundation that positions GM to lead moving forward.”

The exact number of layoffs was not revealed by the auto major, however, a source in the know, affirmed that over 1,000 individuals will be affected in the process, the report noted. About 600 of these employees are located in Warren, Michigan. These employees were informed of the decision on Monday morning. 

These layoffs account for nearly 1.3 per cent of the firm’s overall salaried workforce of 76,000 individuals globally, as reported at the end of the previous year. Amongst this, about 53,000 are salaried employees from the US.

Notably, automakers have been consistently trying to cut down on costs as concerns of a downturn in the industry plague the leaders. Further, the increasing focus on emerging technologies such as electric vehicles, software-defined vehicles etc, adds on to the pressure to reduce operational costs and enhance margins.