- General Motors just laid off over 1,000 salaried employees in its software division.
- The layoffs, first reported by CNBC, represent about 1.3 percent of the company's global workforce.
- About 600 of the affected employees worked out of GM's tech campus just outside of Detroit.
General Motors is laying off more than 1,000 salaried employees globally. The decision comes following a review to streamline operations, according to a report from CNBC published Monday.
“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,” a GM spokesman told CNBC. “As a result, we’re reducing certain teams within the Software and Services organization. We are grateful to those who helped establish a strong foundation that positions GM to lead moving forward.”
While GM did not confirm the exact number of layoffs, a source familiar with the decision told CNBC that roughly 600 of the affected employees come from GM's technology campus in Warren, Michigan, just outside Detroit. The layoffs come out to about 1.3 percent of the company's 76,000-strong salaried workforce, about 53,000 of which are based in the US.
The layoffs come at a time when software has come to define the automotive experience. Touchscreens, infotainment systems, and active safety systems have become main selling points for buyers wanting the latest and greatest technology in their vehicles. And companies like GM have spent billions in an attempt to monetize it through things like subscription services.
GM made the controversial decision to drop Apple CarPlay and Android Auto from its electric vehicles, instead offering in-house software developed in collaboration with Google to reduce distractions and provide a better user experience, according to the brand. This type of integration also makes it easier to sell subscription-based services, creating more revenue opportunities.
