In an Aug. 19 statement, the company confirmed the staff cuts without disclosing the exact number of employees affected by the layoffs. “As we build GM’s future, we must simplify for speed and excellence, make bold decisions and prioritize investments that will have the greatest impact.”
“As a result, we are reducing some teams within the Software and Services organization. We are grateful to those who helped establish a strong foundation that positions GM to lead into the future.”
The affected employees were notified Monday morning.
According to a report by CNBC International, the company will lay off more than 600 employees from its Michigan office.
The moves come less than six months after former Apple Inc. executives David Richardson and Baris Cetinok were promoted to senior vice president roles at the group, the report said.
Read also: GM to recall more than 21,000 electric SUVs in the US over brake issues
The job cuts mean that about 1.3% of the company’s global salaried workforce of 76,000 at the end of last year will be laid off.
Last week, Bloomberg reported that General Motors had been laying off staff in China and would soon meet with local partner SAIC to plan a broader structural overhaul of its operations there, an acknowledgement that the Detroit automaker is unlikely to see its sales return to their 2017 peak.
In China, GM has cut staff in marketing-related departments including research and development, according to people familiar with the matter cited by Bloomberg.
The latest development comes at a time when General Motors’ push for new software has been problematic. The company temporarily suspended sales of its Chevrolet Blazer electric SUV and has had problems with its Cadillac Lyriq EV, some of them related to software glitches.
The company had been adding more people to software development for several years as part of its push into electric vehicles, self-driving cars and software-related services.
New services such as connecting customers to charging stations, digital content and other non-automotive businesses were expected to one day add billions of dollars in annual revenue, Bloomberg noted.
Read also: GM shifts focus from self-driving Origin to next-generation Bolt for autonomous future
Meanwhile, the CNBC report noted that the cuts come as automakers try to cut costs amid fears of an industry slowdown, and as they spend billions of dollars on emerging markets such as all-electric vehicles and so-called software-defined vehicles.
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