GM Cuts More than 1,000 Software Jobs
Summary
A source familiar with the decision told CNBC that the overall number of layoffs in GM’s software and service division tallied more than 1,000 and that approximately 600 of those were located at the company’s Warren, Michigan, “Technical Center.” The network reported that affected workers were informed early this week. The software segment covers a range of GM operations, from its infotainment systems and OnStar emergency response platform to its efforts to build subscription services and other avenues to monetize new vehicle technology. Although GM and other automakers are aggressively pursuing additional revenue streams based on technology offerings, they are also looking to reduce costs amid heavy R&D spending levels and concerns about a potential downturn in the auto sector. The segment is now led by a pair of software executives from GM’s Silicon Valley technology hub. A GM spokesperson told CNBC in a statement that the layoffs stemmed from efforts to prioritize high-impact spending, simplify operations for “speed and excellence,” and make “bold choices.”