Lousy Monday: General Motors Laid Off More than 1,000 Salaried Workers
Mondays are almost never fun, but more than 1,000 salaried GM employees are having an especially bad start to the week. This morning, the automaker announced layoffs that will impact around 1.3 percent of its global workforce.
A spokesperson told CNBC, “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.”
Sources said the automaker’s layoffs would affect around 600 employees at its tech campus in Warren, Michigan. GM is pursuing cost cuts as many in the industry worry about a downturn. The automaker’s software division has been in the news recently, as it decided to remove Apple CarPlay from its vehicles in favor of in-house tech. That move came with some hiccups, however, as the Chevrolet Blazer EV faced delays early in its production run due to software glitches.
This sort of instability will likely become more common as more vehicles become connected. The so-called “software-defined vehicle” lets automakers remotely update tech features, but it also opens the door for subscription and other paid services that could nickel-and-dime new vehicle owners over time.
[Images: General Motors]
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Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.
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