(Matthew Doarnberger, Headline USA) General Motors said it would lay off more that 1,000 salaried employees in its software and services divisions worldwide according to a CNBC report. Roughly 600 of the layoffs will occur at GM’s tech campus near Detroit, Mich.
The reduction in employees comes following the resignation in March of Mike Abbott, the former executive vice president of software and services. Abbott was hired last year amid GM’s increased investment in electric vehicles and subscription-based services.
In a statement explaining the recent layoffs, a GM spokesman cited the need for the automobile company to make investments in the areas that will produce the most efficient results.
“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,” said the statement.
“As a result, we’re reducing certain teams within the Software and Services organization,” it added. “We are grateful to those who helped establish a strong foundation that positions GM to lead moving forward.”
Automakers in general have recently been attempting to reduce costs and increase cash reserves in order to pay for all-electric vehicle technologies.
Despite the attempt to usher in a new age of electric vehicles, federal government initiatives to accomplish this goal have often not yielded their intended result.
It was revealed earlier this year that the Federal Highway Administration had only built seven or eight electric-vehicle charging stations, despite a $7.5 billion investment in 2021.
In April 2023, GM reported that 5,000 of its salaried workers took buyouts to leave the company as it attempted a $2 billion cost-cutting target.
Abbott was replaced by GM executives Baris Cetinok and Dave Richardson. Cetinok is a veteran software engineer. He serves as senior vice president of software and services, program management and design. Richardson is the senior vice president of software and services engineering.
