General Motors is eliminating more than 1,000 jobs — and possibly more than 1,500 — in its software division globally, with 634 of the jobs being cut coming from its Global Technical Center in Warren.
GM said the move is to streamline that division’s operations to work faster and more efficiently.
The cuts follow a tumultuous year for GM software operations, including having to stop sales of Chevrolet Blazer EV, as it was launching late last year, due to software issues. That was in addition to halting sales of its midsize pickups in February, also related to software problems. GM’s stop-sale on the midsize pickups lasted less than 24 hours. GM lifted the stop-sale on the Blazer EV earlier this year after more than two months.
GM also has made several leadership changes in the software unit, including having leader Mike Abbott, a former Apple executive, leave GM due to health reasons in March. Two weeks after Abbott’s departure was announced, Chief Digital Officer Edward Kummer also left the company.
“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,” GM spokesman Kevin Kelly said in an emailed statement. “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.”
A person familiar with the situation said the number of positions being cut is “more than 1,000 and could be more than 1,500.” The person was not authorized to share that information with the public and insisted on not being named.
Late Monday afternoon, GM filed a WARN Act notice with the state. The company said it was terminating 634 employees from its Warren facilities. Monday was their last day, and they will receive a payment equivalent to their wages and benefits as if they were employed through Oct. 18.
The letter shows that of the 634 jobs, 227 were software engineering jobs and 92 were systems engineering roles.
GM’s Kelly said GM announced the Software and Service team reductions to the global salaried workforce Monday morning. While the reductions are worldwide, the greatest impact will be at the Tech Center in Warren. The center will still have the largest concentration of Software and Services employees, Kelly added.
Kelly declined to confirm or disclose the entire number of reductions. He emphasized this is not a cost-cutting measure, but rather a way to more efficiently run software operations.
“We took a close look at the resources and what people were working on and realized we needed to make an adjustment,” Kelly said.
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In an email sent to GM salaried employees Monday that was obtained by the Detroit Free Press, Baris Cetinok said that GM faces increased competition in the U.S. and abroad, so it must shift resources to its highest-priority work and simplify team structures, including “flattening hierarchies” to avoid duplication. Cetinok is senior vice president of Software and Services Product Management, Program Management and Design.
“None of this makes it any easier for those affected, but we wanted to be clear about how and why we made these choices,” Cetinok wrote. “We believe in being transparent about this decision, which is why we’re sharing this news with you.”
According to GM’s annual report, it had about 76,000 global salaried employees, 53,000 in the United States, as of the end of 2023. This action cuts about 2% of the company’s global salaried workforce.
Contact Jamie L. LaReau: [email protected]. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter. Become a subscriber.
This article originally appeared on Detroit Free Press: GM to cut at least 1,000 software jobs, biggest impact in Warren
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