General Motors is cutting over 1,000 salaried jobs worldwide as part of an effort to enhance operational efficiency, as reported by CNBC on Monday.
“In constructing GM’s future, we need to streamline for swiftness and quality, make decisive decisions, and focus on investments that yield the most significant benefits,” a GM spokesperson stated to CNBC. “Consequently, we are shrinking specific divisions within the Software and Services unit. We appreciate the contributions of those who have laid a robust groundwork that enables GM to excel in the future.”
Although GM did not disclose the precise number of job cuts, a source close to the matter informed CNBC that approximately 600 of the laid-off employees were from GM's tech hub in Warren, Michigan, near Detroit. This reduction accounts for roughly 1.3 percent of the company's 76,000 salaried staff, with about 53,000 located in the US.
The job cuts occur as software increasingly shapes the car-buying experience. Features such as touchscreens, infotainment systems, and advanced safety technologies have become key selling points for consumers seeking cutting-edge vehicle technology. Companies like GM have invested billions to capitalize on this through offerings like subscription services.
GM has also taken a contentious step by removing Apple CarPlay and Android Auto from its electric vehicles, opting instead for proprietary software developed with Google to minimize distractions and improve user experience. This integration also facilitates the sale of subscription-based services, opening up additional revenue streams.
