General Motors Layoffs in Detroit

General Motors is laying off more than 1,000 salaried employees globally in its software and services division. The layoffs, including roughly 600 jobs at GM's tech campus near Detroit, come less than six months after leadership changes overseeing the operations.

• The layoffs were announced on Monday morning.
• Impacted employees were notified that day.
• The layoffs represent about 1.3% of the company's global salaried workforce of 76,000 as of the end of last year.

Reasons for the Layoffs

The layoffs are part of a company-wide effort to streamline operations and reduce costs. General Motors is also spending billions of dollars on emerging markets such as all-electric vehicles and so-called software-defined vehicles.

• GM is seeking to prioritize investments that will have the greatest impact on its future.
• The company is focusing on "simplifying for speed and excellence."

Impact of the Layoffs

The layoffs will impact employees in a variety of roles within the software and services division, including infotainment, OnStar, and subscriptions.

• The cuts will affect 600 employees in Warren, Michigan alone.
• The company declined to disclose the full number of layoffs.

General Motors' Software and Services Division

Software, specifically monetizing it, has been a major focus for General Motors as it eyes recurring revenue opportunities such as subscriptions to boost profits.

• The software and services division covers a wide variety of areas for the automaker.
• This includes areas like infotainment, its OnStar brand, and emerging areas such as subscriptions and other vehicle features and development.

Leadership Changes

The layoffs come less than six months after leadership changes overseeing the software and services operations.

• Former Apple executive Mike Abbott left the automaker after less than a year in March due to health reasons.
• He was named GM's first executive vice president of software in May 2023.
• Two GM executives — Baris Cetinok and Dave Richardson — succeeded Abbott.

Industry Trends

The layoffs come as automakers attempt to reduce costs and employee headcount amid fears of an industry downturn.

• Automakers are also spending billions of dollars on emerging markets such as all-electric vehicles and so-called software-defined vehicles.
• The industry is facing a number of challenges, including rising interest rates, inflation, and supply chain disruptions.