GM layoffs to affect more than 1,000 global staff

20 Aug 2024

Image: © Askar/Stock.adobe.com

This comes less than six months after former Apple executive Mike Abbott stepped down from his role as head of software and services – the affected unit.

General Motors (GM) is laying off more than 1,000 employees across its software and services teams globally to streamline operations in the business.

The automotive giant headquartered in Detroit, Michigan told media outlets today (20 August) that it must “simplify [GM] for speed and excellence, make bold choices and prioritise the investments that will have the greatest impact”.

“As a result, we’re reducing certain teams within the software and services organisation,” a spokesperson said. “We are grateful to those who helped establish a strong foundation that positions GM to lead moving forward.”

According to CNBC, which first reported on the job cuts, the layoffs include around 600 jobs at the GM tech campus in Warren, near Detroit. This comes less than six months after former Apple executive Mike Abbott stepped down from his role as head of software and services after less than a year due to health issues.

At the time, Baris Cetinok, then vice-president of product in software and services, was named Abbott’s interim replacement. In June, Cetinok and Dave Richardson were appointed to lead the division based at the new GM Mountain View Technical Centre in California.

Tech companies globally have been reducing their headcounts as a way to cut costs and streamline their businesses. Just this month, both Cisco and Intel announced global job cuts. Other tech companies to announce layoffs this year include Microsoft, TikTok, Indeed, Google, Amazon Web Services, EA, Sony, Snap, PayPal, SAP, eBay, Twitch and Xerox.

In the automotive sector, electric vehicle giant Tesla announced a plan to cut more than 10pc of its staff amid a drop in vehicle sales. Earlier that month, Tesla posted a decline in quarterly deliveries for the first time in nearly four years and missed Wall Street estimates.

Also in April, Apple shared plans to lay off more than 600 staff from its operations after pulling the plug on various projects, including its electric car endeavour – Project Titan.

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Vish Gain was a journalist with Silicon Republic

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