General Motors to Lay Off 1,000 Software Employees
- General Motors announces global lay off of 1,000 software employees, affecting majority in Michigan.
- 600 workers in Warren, Michigan to be included in the lay off.
- Impacted employees to also come from California and Texas.
General Motors (GM) has revealed plans to lay off approximately 1,000 employees globally, primarily affecting its software and services division. The majority of the job cuts, around 600 positions, will come from the Technical Center in Warren, Michigan. The layoffs were communicated to the affected staff earlier this week, as part of a strategic review aimed at streamlining operations within the division. A GM spokesperson emphasized the need for simplification and prioritization of impactful investments as the company looks to the future. The automaker clarified that the layoffs are not driven by cost-cutting measures but stem from an operational review following the departure of Mike Abbott, the former executive vice president of software and services. This reduction represents about 1.3 percent of GM's global salaried workforce, which stood at 76,000 at the end of last year. The decision comes at a time of heightened tensions between the United Auto Workers (UAW) and Stellantis, particularly regarding the reopening of a factory in Illinois, which has implications for the broader labor landscape in the automotive industry. Union President Shawn Fain has publicly criticized GM and Stellantis for not fulfilling commitments related to the Belvidere assembly plant, which was a focal point during recent contract negotiations. The ongoing labor disputes and the recent layoffs highlight the challenges facing the automotive sector as it navigates a rapidly changing market environment.