General Motors is laying off approximately 1,000 software employees worldwide as part of a strategic shift to focus on other initiatives, like improving its Super Cruise driver aid system, enhancing its infotainment system, and using artificial intelligence.
The majority of the cuts will occur in its headquarters state of Michigan, namely at GM’s Global Technical Center in Warren.
However, rather than coming as a response to increased financial pressure, the change is being branded as one that will allow the automaker to evolve in harmony with the sector more generally.
General Motors moves to software-defined vehicles
Strangely, by making 1,000 software workers redundant, GM plans to move into the evolving landscape of software-defined vehicles. Company spokesperson Stuart Fowle emphasized that the layoffs are not related to cost-cutting or individual performance.
The shift follows a series of challenges the car manufacturer has faced with its software initiatives, including halting sales of the new Chevrolet Blazer EV in late 2023 due to software glitches.
GM has also recently promoted two former Apple execs to lead its software and services team, following the departure of Mike Abbott, another ex-Apple staffer.
In a statement, GM acknowledged the significance of the layoffs, stating: “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.”
In an email to TechRadar Pro, GM affirmed that the layoffs do not signify a shift in focus to software-defined vehicles, but rather the simplification of the organization and the flattening of hierarchies in order to allow the company to pivot and react more quickly. A company spokesperson 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."
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