Driving change: GM layoffs 2024 explained

GM layoffs 2024 will affect 1,000 jobs worldwide in its software and services division. About 600 of these layoffs will affect employees at GM’s tech campus in Warren, Michigan. Overall, this cut represents around 1.3% of GM’s global salaried workforce, which was 76,000 at the end of the previous year. The affected employees were informed on August 19, 2024.

The story behind the GM layoffs 2024

GM decided to make these layoffs after a review of its software and services division. The company wants to make its operations simpler and more efficient. The software and services division includes:

• Infotainment systems: The technology that provides entertainment and information in vehicles.
• OnStar: GM’s safety and security service for vehicles.
• Subscription services: New ways to make money from software features and services.
• Software development: Improving and developing new software for vehicles, including advanced driver-assistance systems.

(Credit) Leadership changes

GM layoffs follow recent changes in the leadership. Mike Abbott, who had been hired from Apple as GM’s first executive vice president of software, left the company in March 2024 due to health issues. Two new executives have taken over his role:

• Baris Cetinok: Now Senior Vice President of Software and Services Product Management. Cetinok will manage the development and planning of GM’s software products.
• Dave Richardson: Senior Vice President of Software and Services Engineering. Richardson will handle software engineering, including platforms, digital products, and advanced driver-assistance systems like GM’s Super Cruise.

What do the GM layoffs in 2024 mean?

The car industry is undergoing big changes with more focus on electric vehicles and new software technologies. Companies are investing a lot in these new areas to stay competitive. For GM, making money from software and services is becoming more important. The company is looking into recurring revenue models, like subscriptions, to boost profits.

The layoffs at GM reflect a wider trend in the car industry where companies are cutting costs and jobs to adapt to market changes and economic uncertainty. While these layoffs are significant, GM believes they are necessary to focus resources and strengthen its position in the evolving market.

Looking ahead

As GM moves forward, it is focusing on improving its operations and investing in key areas that will drive future success. By cutting jobs in its software and services division, GM aims to become more efficient and well-positioned for growth in the competitive automotive market.

Featured image credit: GM