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General Motors is to cut its workforce headcount by more than 1,000, with the company set to commit resources to projects likely to have the “greatest impact”.
The American multinational auto giant will focus on initiatives such as fine-tuning its Super Cruise driver assistance tech and exploring AI’s benefits.
As part of the cuts, around 600 jobs will be lost at GM’s tech site in Michigan, with the remainder expected to impact operations outside the States.
As first reported by Bloomberg, the staff reduction is not related to performance or a need to make savings but to a review of overall operations following the departure of a senior figure.
Mike Abbott, GM’s executive vice president of software and services, left the firm in March of this year due to health reasons. Given the increased investment in GM’s electric vehicles, he was brought in to oversee software development, but in his absence, the company has decided on a change of tack.
Software-Focused Vehicles
A company statement said, “We must simplify for speed and excellence, make bold choices, and prioritize the investments that will have the greatest impact.”
The decision to take a different path follows notable software issues that, after problems were flagged soon after release, contributed to a pause in sales of GM’s Blazer EV at the end of 2023.
In the interim period, two Apple executives were brought on board to fill the void left by Abbott, another iPhone maker alumni, but more changes will follow as GM strives to be more competitive in the new age of software-focused vehicles.
This latest round of job losses was preceded by a larger exodus in April 2023 when 5,000 workers opted for a buyout as part of company efforts to reach a £2 billion cost-cutting target.
