General Motors Layoffs: Over 1,000 Jobs Cut in Software Division
What is the reason for General Motors layoffs?
General Motors is set to lay off more than 1,000 salaried employees worldwide within its software and services division. This decision follows an internal review aimed at optimizing the unit’s operations, according to information obtained by CNBC. Approximately 600 of these layoffs will take place at GM’s tech campus near Detroit, marking significant changes within the company’s workforce.
These layoffs come less than six months after a major leadership shift within the division, which included the departure of former Apple executive Mike Abbott in March due to health issues. Abbott had joined GM as the executive vice president of software but stepped down after less than a year in the role.
In a statement, a GM spokesperson emphasized the company’s focus on streamlining operations and making strategic investments. “As we shape GM’s future, it’s essential to simplify processes for speed and efficiency, make bold decisions, and prioritize investments that will have the most impact,” the spokesperson said. “As a result, we’re reducing certain teams within the Software and Services organization. We’re grateful for the contributions of those who helped establish a strong foundation for GM’s continued leadership.”
What areas will GM focus on after the layoffs?
While GM did not publicly disclose the total number of affected employees, a source with knowledge of the situation confirmed that more than 1,000 salaried positions would be eliminated, including 600 in Warren, Michigan. Impacted employees were informed of the layoffs on Monday morning.
The job cuts represent roughly 1.3% of GM’s global salaried workforce, which totaled 76,000 at the end of last year, including about 53,000 salaried employees in the U.S. This move comes amid broader industry trends, as automakers face cost-cutting pressures and a potential downturn while simultaneously investing heavily in emerging markets such as electric vehicles and software-defined vehicles.
For GM, software has become a key area of focus, particularly in generating recurring revenue streams through subscriptions and other digital offerings. The software and services division encompasses a wide range of operations, including vehicle infotainment systems, the OnStar brand, and new ventures like subscription services and vehicle features.
Need Assistance from Whitten & Lublin?
If you’re a non-unionized General Motors employee in Canada facing dismissal due to this restructure, you could be eligible for full severance pay. The amount you receive can vary depending on specific factors and could reach up to 24 months’ worth of pay. In Ontario, when mass layoffs involve 50 or more employees, severance packages may be even more substantial. If you haven’t received your full severance, you have the right to pursue additional compensation.
Whitten & Lublin is here to guide you through the difficulties of job loss or termination. Our team of experienced employment lawyers can help you understand your legal rights and secure the compensation you’re owed. If you’ve been affected by recent layoffs in Canada, reach out to us for a consultation via our online portal or call us at (416) 640 2667 today.