General Motors (GM) is implementing a major reduction in its global workforce, eliminating more than 1,000 salaried positions, with a significant focus on its software and services division. This action aims to streamline operations and boost efficiency as the automotive sector undergoes transformation.
Around 600 positions will be affected at GM’s technology campus near Detroit, with the remaining cuts spread across other locations. This announcement follows a notable leadership change, including the departure of Mike Abbott, who left his role as GM’s first executive vice president of software in March due to health reasons. Abbott’s exit led to Baris Cetinok and Dave Richardson taking on leadership roles within the division.
The employees were notified on Monday morning. The planned layoffs represent about 1.3% of GM’s total salaried workforce, which was 76,000 at the end of the previous year, including roughly 53,000 in the U.S.
The move aligns with a wider industry trend where automakers are reducing headcount and operational costs amid economic uncertainties while ramping up investments in new technologies. GM’s decision highlights its shift towards optimizing operations and reallocating resources to high-growth areas, including electric vehicles and advanced software solutions.
GM’s software and services division covers various areas, such as infotainment, the OnStar brand, and subscription-based services. The company is intensifying efforts to monetize its software and explore new revenue streams, positioning itself as a leader in these emerging fields.
The division will now be led by Baris Cetinok and Dave Richardson. Cetinok, as senior vice president of software and services product management, program management, and design, will oversee GM’s software strategy and the development of software products. Richardson, the senior vice president of software and services engineering, will lead initiatives in software engineering across embedded platforms, digital products, commercial solutions, and advanced driver-assistance systems like GM’s Super Cruise.
These strategic adjustments reflect GM’s ongoing commitment to refining operations and focusing on high-impact investments. By restructuring its software and services division, GM aims to better adapt to the rapidly evolving automotive landscape and drive future growth.
As GM progresses through these changes, it remains focused on leveraging its technological advancements to maintain a competitive edge in the automotive industry.