GM Announces Significant Workforce Reductions in Software Division

General Motors (GM) has revealed plans to cut over 1,000 salaried positions globally, mainly targeting its software and services sector. This move is part of GM’s strategy to streamline its operations and improve efficiency as the automotive industry evolves.

Approximately 600 of these layoffs will affect employees at GM’s tech campus near Detroit, with the remainder dispersed across other facilities. This announcement follows a major leadership change earlier this year, including the exit of former Apple executive Mike Abbott. Abbott, who had been GM’s first executive vice president of software since May 2023, left in March due to health concerns. His departure led to the appointments of Baris Cetinok and Dave Richardson as his successors.

The layoffs constitute around 1.3% of GM’s global salaried workforce, which numbered 76,000 at the end of the previous year. This includes approximately 53,000 salaried employees based in the U.S. Those affected were informed on Monday morning.

This move is in line with a broader industry trend where automotive companies are reducing costs and workforce amid economic uncertainties while investing heavily in emerging technologies. GM’s decision underscores its focus on optimizing operations and reallocating resources toward high-growth areas, such as electric vehicles and software-driven innovations.

GM’s software and services division includes various functions, such as infotainment systems, the OnStar brand, and subscription-based services. The company’s renewed focus on monetizing software and exploring new revenue streams is part of its strategy to lead in these emerging markets.

The division will now be led by Baris Cetinok and Dave Richardson. Cetinok, the new senior vice president of software and services product management, program management, and design, will oversee GM’s software strategy and the development of its software programs. Richardson, who is the senior vice president of software and services engineering, will head software engineering initiatives across embedded platforms, digital products, commercial solutions, and advanced driver-assistance systems like GM’s Super Cruise.

These changes reflect GM’s commitment to refining its operations and focusing on high-impact investments. By restructuring its software and services division, GM aims to better navigate the evolving automotive landscape and drive future growth.

As GM continues these transitions, the company is poised to leverage its technological advancements to maintain its leadership position in the automotive industry.