General Motors (GM) is cutting more than 1,000 salaried positions worldwide in its software and services division, with the majority based in the US.
The layoffs, as initially reported by CNBC, include about 600 positions at GM's Global Technical Center in Warren, Michigan.
A GM spokesperson confirmed that most of the affected workers are indeed based at the Detroit-area tech campus. However, the automaker did not confirm the exact number of employees impacted by the layoffs. The affected GM employees were informed this morning.
"This was a strategic decision based on priority work and the necessary resources and skills," the spokesperson told The Register in an email.
"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 stated. "As a result, we're reducing certain teams within the Software and Services organization."
At the end of 2023, GM reported it had about 76,000 salaried employees globally, including 53,000 based in the US. The latest headcount reduction represents about 1.3 percent of its workforce.
These layoffs followed a separate round of job cuts earlier in 2023 when GM announced a plan to lay off about 1,300 workers at its Orion Assembly and Lansing Grand River Assembly plants in Michigan. The spokesperson clarified that these two rounds of cuts are not connected.
Adding to its challenges, GM is also facing legal scrutiny as the state of Texas recently sued the automaker, alleging a years-long scheme to collect and sell drivers' data to third parties, including insurance companies, without drivers' knowledge or consent.
GM's layoff announcement comes on the heels of similar recent moves across the tech industries. Cisco, for instance, announced to reduce its global workforce by about 7%, while Dell laid off about 12,500 employees, and Intel cut thousands of workers.