GM to reduce 1,000 employees in the software division.

GM, the American car manufacturer, has reportedly laid off more than 1,000 employees, mainly in its software and services division, as reported by CNBC on the 19th local time. According to the report, GM notified around 1,000 employees, including about 600 employees working at the tech campus near its headquarters in Detroit, of the layoffs that morning. This layoff scale accounts for approximately 1.3% of GM’s global workforce of 76,000 salaried employees. Earlier in March, Mike Ableson, a former Apple executive who led GM’s software and services division, left the company for health reasons. While GM did not specify the exact scale of the layoffs, they stated the need to simplify operations to accelerate progress and achieve outstanding results in shaping the company’s future. They emphasized the importance of making bold choices, determining investment priorities, and reducing some teams in the software and services division. This round of layoffs has gained attention as the automotive industry has been making significant new investments in electric vehicles and software-driven vehicles (SDVs). Global OEMs, including GM, consider subscription models to play a crucial role in future revenue streams for the automotive industry and have been focusing on investments in the software sector. Meanwhile, GM is also considering restructuring its struggling business in China due to poor sales. Bloomberg reported that GM plans to discuss personnel reduction in China-related departments, including research and development with its Chinese partner SAIC, as well as local production cuts and business direction changes.