General Motors fires over 1,000 techies, US team hit hardest
General Motors (GM), a leading US automaker, is set to lay off over 1,000 software engineers worldwide. The move is part of GM's strategy to streamline its software and services division. "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 stated. GM is the parent company of popular brands like Chevrolet, Cadillac, GMC, and Buick.
GM's restructuring significantly impacts Michigan office
The restructuring will significantly impact GM's Michigan office, with over 600 employees set to lose their jobs. This decision comes less than six months after former Apple executives David Richardson and Baris Cetinok were promoted to senior vice-president roles in the group. They were appointed to fill the void left by Mike Abbott, another Apple veteran who had joined GM as its executive vice president of software and services before leaving due to health reasons in March.
Layoffs represent 1.3% of GM's global workforce
The layoffs represent about 1.3% of GM's global salaried workforce, which stood at 76,000 at the end of last year. This news follows recent reports that GM had been reducing staff in China and planning a larger structural overhaul of its operations there with local partner SAIC. In China, GM made cuts in market-related departments including research and development, according to Bloomberg.
GM's software development challenges and future plans
GM has faced several challenges in its software development efforts. The company temporarily halted sales of its Chevrolet Blazer electric SUV due to software glitches, and experienced issues with its Cadillac Lyriq EV. Additionally, GM scrapped its "Ultra Cruise" project, a competitor to Tesla Full Self-Driving, and merged the project's team with the regular Super Cruise team in January. Despite these setbacks, GM continues to invest heavily in software development for electric vehicles (EVs), self-driving cars, and related services.
