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DETROIT – General Motors is laying off more than 1,000 salaried employees globally in its software and services division following a review to streamline the unit’s operations, CNBC has learned.
The layoffs, including roughly 600 jobs at GM’s tech campus near Detroit, come less than six months after leadership changes overseeing the operations, including former Apple executive Mike Abbott leaving the automaker due to health reasons.
“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,” a GM spokesman said in an emailed statement. “As a result, we’re reducing certain teams within the Software and Services organization. We are grateful to those who helped establish a strong foundation that positions GM to lead moving forward.”
GM declined to disclose the entire number of layoffs, but a source familiar with the action confirmed more than 1,000 salaried employees would be laid off, including 600 in Warren, Michigan. Impacted employees were notified Monday morning.
The layoffs represent about 1.3% of the company’s global salaried workforce of 76,000 as of the end of last year. That included about 53,000 U.S. salaried employees.
The cuts come as automakers attempt to reduce costs and, in many instances, employee headcount amid fears of an industry downturn, and as they’re spending billions of dollars on emerging markets such as all-electric vehicles and so-called “software-defined vehicles.”
Software, specifically monetizing it, has been a major focus for automakers, including GM, as it eyes recurring revenue opportunities such as subscriptions to boost profits.
The software and services division covers a wide variety of areas for the automaker, including infotainment, its OnStar brand and emerging areas such as subscriptions and other vehicle features.