Heaptalk, Jakarta — General Motors (GM), a Detroit-headquartered automaker, reportedly lays off more than 1,000 salaried employees globally in the software and services division (08/19). According to CNBC, the measure is taken to streamline the unit’s operations.
Less than six months after the leadership changes took over the company, this step affected approximately 600 jobs at GM’s tech campus near Detroit. GM refused to detail the number of layoffs. However, a source familiar with the matter confirmed more than 1,000 salaried employees would be laid off, including 600 in Warren, Michigan. Impacted employees were notified Monday morning (08/19).
The layoffs represent about 1.3% of the company’s global salaried workforce of 76,000 as of the end of last year, including about 53,000 U.S. salaried employees. This approach appears as the company aims to lessen costs and employee headcount amid fears of an industry downturn. GM is spending billions of dollars on emerging markets, including all-electric and software-defined vehicles.
“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. 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,” stated a GM spokesman as quoted by CNBC.
