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GM Cutting Jobs at Its Software and Services Unit

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3 months ago

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GM Cutting Jobs at Its Software and Services Unit

Key Takeaways

  • General Motors is reportedly cutting more than 1,000 salaried employee jobs in the carmaker’s Software and Services division.
  • CNBC reported that roughly 600 of those reductions would be at GM’s tech campus near Detroit.
  • The layoffs followed a review of the business after former head Mike Abbott left in March, the report said.

General Motors (GM), the biggest U.S. automaker, reportedly will be laying off more than 1,000 salaried employees globally at its Software and Services business.

The reductions would represent about 1.3% of its global salaried workforce as of the end of last year, CNBC reported, adding about 600 of the jobs cut will be at the company’s tech campus near Detroit.

Reported Review of Operations After Unit Head Departed in March

CNBC said the layoffs were made after a review of operations that was done following the March departure of division head and former Apple (AAPL) executive Mike Abbott, who left because of health reasons. Abbott was replaced by two other ex-Apple execs, Baris Cetinok and Dave Richardson.

“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 said in a statement to Investopedia. “As a result, we’re reducing certain teams within the Software and Services organization.”

General Motors shares rose less than 1% to $45.67 as of 1:35 p.m. ET Monday. They have advanced roughly 27% year-to-date.

UPDATE—This story has been updated with a GM statement and the latest stock price.

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