“As we build GM’s future, we must simplify for speed and excellence, make bold choices, and prioritise the investments that will have the greatest impact,” GM said in a statement to CNBC.
The layoffs represent approximately 1.3% of GM’s global salaried workforce of 76,000 as of the end of last year. The cuts primarily affect the automaker’s US operations. Impacted employees were notified Monday morning.
“We are grateful to those who helped establish a strong foundation that positions GM to lead moving forward,” the automaker added in its statement.
Job cuts come after the change of leadership
“As a result, we’re reducing certain teams within the Software and Services organisation,” GM stated. The division, currently led by executives Baris Cetinok and Dave Richardson, covers areas such as vehicle infotainment, OnStar services, and GM’s Super Cruise advanced driver-assist system.
The change comes less than six months after leadership shifts in the unit, including the departure of former Apple executive Mike Abbott in March due to health reasons.
GM recently faced a few software incidents
The job cuts follow GM’s efforts to reduce costs amid industry concerns of a potential downturn and significant investments in electric vehicles and software-defined vehicles. GM has recently faced challenges with software issues in its new Chevy Blazer EV, including blank infotainment screens and charging error messages. The company issued a stop sale notice last December due to these problems, which was lifted in March.
The layoffs also come after GM cancelled its “Ultra Cruise” programme, a competitor to Tesla’s Full Self-Driving system, in January. The company merged the FSD team with its regular Super Cruise team.
Despite the layoffs and recent setbacks, the company says it continues to work on expanding its hands-free driving system, with plans to broaden its capabilities by the end of 2025.