GM to lay off more than 1,000 employees in software and services – Global News (Trending Perfect)

Detroit — General Motors Microsoft is cutting more than 1,000 permanent employees worldwide from its software and services division after a review to streamline the unit's operations, CNBC has learned.

The layoffs, including about 600 jobs at GM's technology campus near Detroit, come less than six months after a leadership shakeup oversaw operations, including former Apple CEO Mike Abbott's departure from the automaker after less than a year in March for health reasons.

“As we build GM’s future, we must simplify for speed and excellence, make bold choices, and prioritize investments that will have the greatest impact,” a GM spokesperson said in an emailed statement. “As a result, we are reducing certain teams within the Software and Services organization. We are grateful to those who helped build the strong foundation that will enable GM to lead moving forward.”

GM declined to disclose the full number of workers laid off, but a source familiar with the matter, who declined to be named because the information is private, said the company would continue operating through the end of the year., The company confirmed that more than 1,000 employees will be laid off, including 600 in Warren, Michigan. Affected employees were notified Monday morning.

The layoffs represent about 1.3% of the company's total global profits. Fixed wage workforce of 76,000 As of the end of last year. That included about 53,000 salaried U.S. employees.

The cuts come as automakers try to cut costs and, in many cases, headcount amid fears of an industry slowdown — and as they spend billions of dollars on emerging markets such as all-electric vehicles and software-defined vehicles.

Software, and specifically its monetization, has been a major focus for automakers, including General Motors, as they look to recurring revenue opportunities like subscriptions to boost profits.

The Software and Services division covers a broad range of areas for the automaker, including infotainment, its OnStar brand, and emerging areas such as subscriptions, other vehicle features and development.

Two GM executives — Paris Setinock and Dave Richardson —Succeeding Abbott, who was named senior executive vice president of software at GM in May 2023. They are based at GM's Technical Center in Mountain View, California.

A senior software executive, Setinuk serves as senior vice president of software product management, services, program management and design. He oversees the teams responsible for designing GM’s software roadmap and the software development, launch and improvement process.

Richardson, GM's senior vice president of software engineering and services, leads software engineering, including areas such as embedded platforms, digital products, commercial solutions and advanced driver assistance systems such as GM's Super Cruise.