General Motors (GM) has announced that it will be cutting more than 1,000 employees globally in its software and services division, marking a significant shift from the hiring spree the company has been on in recent years. According to The Wall Street Journal, approximately 600 of these job cuts will affect employees based around GM’s Detroit-area headquarters, although the total number of layoffs has not been disclosed.
In recent years, GM has been actively recruiting thousands of salaried workers in software and other tech-related fields as part of its efforts to develop smarter vehicles that can be updated much like smartphones. This move is in line with the broader trend among traditional automakers to incorporate more advanced technology into their vehicles.
The decision to downsize the software and services division comes just two months after GM appointed two former Apple executives, Baris Cetinok and Dave Richardson, to lead the division focused on digital aspects of the business, such as connected vehicles, infotainment, and advanced driver-assistance systems. Both executives were brought on board last year under the leadership of Mike Abbott, another former Apple executive who stepped down as GM’s software chief in March due to health reasons.
The job cuts were reportedly a result of a review conducted by Cetinok and Richardson, who identified areas where the division’s operations could be streamlined. This restructuring is part of GM’s broader strategy to enhance its software capabilities and keep pace with competitors in the rapidly evolving automotive industry.
GM, along with other legacy automakers, has been racing to catch up with companies like Tesla and Chinese electric-vehicle startups in developing software that can be updated wirelessly to add new features or improve vehicle performance. This shift towards software-driven innovation reflects a broader industry trend towards offering vehicle updates and services that enhance the driving experience, such as hands-free driving and automation features.
Overall, GM’s decision to trim its software and services division highlights the company’s ongoing efforts to adapt to the changing automotive landscape and remain competitive in an increasingly technology-driven industry. By focusing on streamlining operations and enhancing software capabilities, GM is positioning itself for future success in the rapidly evolving world of connected vehicles and smart technology.