General Motors cuts over 1,000 jobs to streamline operations and boost efficiency

General Motors announced on Aug 19 that it is laying off over 1,000 salaried employees worldwide from its software and services division. This includes about 600 positions at GM’s technology campus near Detroit, as part of an effort to streamline operations within the unit.

"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," GM said.

The job cuts amount to roughly 1.3% of GM's global salaried workforce of 76,000 as of the end of last year, with the majority affecting the company's US operations. Employees affected by the layoffs were informed on Aug 19.

"We are grateful to those who helped establish a strong foundation that positions GM to lead moving forward," the automaker added in its statement.

"As a result, we're reducing certain teams within the Software and Services organization," GM said.

The division in question, overseen by executives Baris Cetinok and Dave Richardson, manages critical functions such as vehicle infotainment, OnStar services, and GM's Super Cruise advanced driver-assist system.

This restructuring comes less than six months after significant leadership changes, including the departure of former Apple executive Mike Abbott in March due to health reasons.

The job reductions are part of GM's broader strategy to cut costs amid concerns about a potential industry downturn and substantial investments in electric and software-defined vehicles.

Recently, GM encountered software issues with its new Chevy Blazer EV, such as malfunctioning infotainment screens and charging errors, leading to a stop-sale notice issued in December and lifted in March.

Additionally, the layoffs follow the cancellation of GM's "Ultra Cruise" program in January, which was intended to rival Tesla's Full Self-Driving system. This program was integrated with the existing Super Cruise team.

Despite these challenges, GM remains focused on advancing its hands-free driving technology and plans to enhance its capabilities by the end of 2025.

The company emphasizes that, despite the layoffs and recent difficulties, it is committed to expanding its technological offerings and maintaining progress in its innovation efforts.

The tech sector overall has been experiencing a wave of layoffs in 2024. Major companies, including Intel, have announced significant job cuts, with Intel reducing its workforce by 15,000 employees.

Other leading tech firms, such as Microsoft, Amazon, and Google, have also made notable reductions in their staff numbers. This trend reflects a broader pattern of workforce downsizing across the industry as companies adjust to changing economic conditions and strategic priorities.

In 2024, several major companies implemented significant layoffs. Microsoft reduced its workforce by approximately 3,000 employees, while Reliance let go of 42,000, mostly affecting contract and part-time workers.

Paytm cut around 3,500 jobs. Unacademy, after recently reducing its staff by 250, announced that no appraisals would be given this year. Cisco also laid off around 10,000 employees in 2024.

Among the 32 companies that have collectively dismissed many employees are prominent names like Byju’s, Ola, Swiggy, Unacademy, Cult.fit, and Simpl.