GM to cut at least 1,000 software jobs

General Motors is eliminating more than 1,000 jobs — and possibly more than 1,500 — in its software division globally, with nearly 600 of the jobs being cut coming from its Global Technical Center in Warren, Michigan.
GM said the move is to streamline that division’s operations to work faster and more efficiently.
The layoffs follow a tumultuous year for GM software operations, including having to stop sales of Chevrolet Blazer EV as it was launching late last year due to software issues as well as halting sales of its midsize pickups in February, also related to software problems. GM’s stop-sale on the midsize pickups lasted less than 24 hours. GM lifted the stop-sale on the Blazer EV earlier this year after more than two months.
GM also has made several leadership changes in the software unit, including having leader Mike Abbott, a former Apple executive, leave GM due to health reasons in March. Two weeks after Abbott’s departure was announced, Chief Digital Officer Edward Kummer also left the company.
“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,” GM spokesman Kevin Kelly 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.”
A person familiar with the situation said the number of positions being cut is “more than 1,000 and could be more than 1,500.” GM is expected to file a WARN Act notice around noon Monday with more details.
GM’s Kelly said GM announced the Software and Service team reductions Monday morning, noting that it’s a global initiative. But he said the greatest impact will be at the Tech Center in Warren. The center will still have the largest concentration of Software and Services employees, Kelly added.
Kelly declined to confirm or disclose the entire number of layoffs, beyond saying 600 of the cuts are of employees in Warren. He emphasized this is not a cost-cutting measure, but rather a way to more efficiently run software operations.
“We took a close look at the resources and what people were working on and realized we needed to make an adjustment,” Kelly said of the last several months.
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In an email sent to GM salaried employees Monday that was obtained by the Detroit Free Press, part of the USA TODAY Network, Baris Cetinok said as GM faces increased competition in the U.S. and abroad, it must shift resources to its highest-priority work and simplify team structures, including “flattening hierarchies” to avoid duplication. Cetinok is senior vice president of Software and Services Product Management, Program Management and Design.
“None of this makes it any easier for those affected, but we wanted to be clear about how and why we made these choices,” Cetinok wrote. “We believe in being transparent about this decision, which is why we’re sharing this news with you.”
According to GM’s annual report it had about 76,000 global salaried employees, 53,000 in the United States, as of the end of 2023. So this cut about 2% of its global salaried workforce.
Contact Jamie L. LaReau: [email protected]. Follow her on Twitter @jlareauan.