General Motors globally lays off over 1000 software department employees with a "big knife"

On Monday, August 19th, Eastern Time, according to media reports, General Motors (GM) has decided to lay off more than 1,000 salaried employees globally after evaluating its "Software and Services Division" for streamlining. This layoff is part of GM's efforts to address industry challenges, reduce costs, and focus resources on new areas such as electric vehicles and software-defined vehicles.

The layoffs include approximately 600 positions at GM's technical center near Detroit. The affected employees were notified on Monday morning. As of the end of last year, this layoff accounted for about 1.3% of the company's global workforce of 76,000 salaried employees, including around 53,000 in the United States.

Media reports indicate that the main reasons for the layoffs are cost-cutting measures to prepare for a potential downturn in the automotive industry. At the same time, the company can concentrate its money on investments in new areas. GM has already invested billions of dollars in areas such as all-electric vehicles and so-called "software-defined vehicles". GM is now placing a strong emphasis on software, aiming for long-term profit growth through selling software or providing subscription services. The company's "Software and Services Division" covers various areas including in-car entertainment systems, security services, and subscription services.

A GM spokesperson stated in an email:

"To build GM's future, we are streamlining processes, pursuing speed and excellence, and making bold decisions. We will prioritize investments that will have the most impact and streamline certain teams within the Software and Services Division. We appreciate the employees who have helped us lay a solid foundation, enabling GM to move forward."

There have been changes in the leadership of GM's "Software and Services Division" in the past six months. Former Apple executive Mike Abbott was appointed as GM's first Chief Software Officer in May 2023, but he resigned in March of this year due to health reasons less than a year after joining GM. Subsequently, Baris Cetinok and Dave Richardson took over his position, with their offices located in California.

Cetinok currently serves as Senior Vice President of Software and Service Product Management, Project Management, and Design, responsible for managing the development roadmap of GM software and the teams involved in software development, deployment, and improvement processes. Richardson serves as Senior Vice President of Software and Service Engineering, leading software engineering including embedded platforms, digital products, business solutions, and the Super Cruise advanced driver assistance system