General Motors Co. is laying off more than 1,000 salaried employees in its software and services division globally, according to a source familiar with the matter, including about 600 employees working at its Global Technical Center in Warren.
In a statement, GM spokesperson Kevin Kelly said as the company builds its future it “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.”
GM has been rethinking its software strategy after struggling with issues since launching several new EVs. Most recently, the automaker recalled more than 20,000 electric Cadillac Lyriq all-wheel drive SUVs for a software glitch that could cause the anti-lock braking system to falsely activate, increasing the risk of a crash.
Earlier this year, GM placed a stop sale on the electric Chevrolet Blazer because of a software problem. The Lyriq and GMC Hummer EV have had other software issues that required recalls, marring highly anticipated launches.
The layoffs signal the Detroit automaker’s intensifying focus on the software embedded in new vehicles and come after GM executives in June put Baris Cetinok and Dave Richardson in charge of the organization. Armed with years of Silicon Valley tech experience, both joined GM in September 2023.
Cetinok and Richardson took over GM’s software organization after former leader Mike Abbott left GM in March 2024 due to health reasons. Cetinok and Richardson work out of GM’s new Mountain View Technical Center in California.
Cetinok has more than 25 years of experience in product, engineering and design at companies including Microsoft, Amazon, and Apple. Richardson worked at Apple for 12 years as an engineering leader responsible for driving innovation and efficiency in infrastructure for services including iCloud, FaceTime and Siri.
GM isn’t alone in having software problems. Rivals Volvo Cars, Volkswagen AG and Tesla Inc. all have been there, underscoring just how vital properly operating software can be for customers accustomed to technology that is reliable..
“A big part of the challenge legacy automotive companies, both automakers and suppliers, have faced has to do with their organizations and their processes that were not really set up for modern automotive software development,” said Sam Abuelsamid, principal e-mobility analyst at market research firm Guidehouse Inc.
“They’ve been doing software for decades, but the nature of software development has fundamentally changed in recent years, and developing modern software-defined vehicles is a much more complex process than it has been in the past.”
Outside of the Warren operation, where GM employs more than 20,000, affected employees also work in California, Austin, Texas, Canada and elsewhere.
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