General Motors (GM) is laying off more than 1,000 salaried employees globally within its Software and Services division as part of a strategic effort to streamline operations. The layoffs, which include approximately 600 positions at GM’s tech campus near Detroit, follow a recent leadership transition within the division and reflect the automaker’s focus on simplifying processes and prioritizing investments in key areas of growth.
A GM spokesperson confirmed the layoffs, stating, “As we build GM’s future, we must simplify for speed and excellence, make bold choices, and prioritize the investments that will have the greatest impact. As a result, we’re reducing certain teams within the Software and Services organization.” The company expressed gratitude to those impacted, acknowledging their contributions to establishing a strong foundation for GM’s future endeavors.
While GM did not disclose the exact number of layoffs, a source familiar with the situation confirmed that more than 1,000 salaried employees would be affected, representing roughly 1.3% of the company’s global salaried workforce, which totaled 76,000 as of the end of the previous year. Of these, about 53,000 are based in the United States.
The decision to reduce headcount comes as the automotive industry faces growing pressure to cut costs amidst concerns of an economic downturn. At the same time, automakers like GM are investing heavily in emerging markets, such as electric vehicles (EVs) and software-defined vehicles. Monetizing software through recurring revenue streams, such as subscriptions, has become a major focus for GM and other automakers as they seek new ways to boost profits.
GM’s Software and Services division encompasses a wide range of areas, including infotainment systems, the OnStar brand, and emerging sectors such as vehicle subscriptions and other advanced vehicle features. The division’s leadership has undergone recent changes, with Baris Cetinok and Dave Richardson stepping into key roles after the departure of former Apple executive Mike Abbott in March 2024 due to health reasons.
Cetinok, a seasoned software executive, now serves as GM’s senior vice president of software and services product management, program management, and design. He oversees the teams responsible for GM’s software roadmap, design, and the development, launch, and continuous improvement of software programs. Richardson, GM’s senior vice president of software and services engineering, leads efforts in software engineering across areas such as embedded platforms, digital products, commercial solutions, and advanced driver-assistance systems like GM’s Super Cruise.
As GM moves forward with its strategic goals, the company remains focused on maintaining its leadership position in the evolving automotive industry by streamlining operations and investing in technologies that will shape the future of transportation.
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