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General Motors has announced the elimination of around 1,000 software employees around the globe in an effort to focus on “higher priority” initiatives such as improving its Super Cruise Driver Assistance System, the quality and functionality of its infotainment system and exploring the use AI.
GM spokesperson Stuart Fowle said that the job cuts were not about cost-cutting or individual performance. They are intended to help the company move faster as it attempts to compete in the ” software defined vehicles” world.
Fowle explained that this could mean focusing on the most important infotainment functions for consumers, rather than developing a variety of features.
The shuffle follows recent software issues that GM has faced. The automaker temporarily stopped sales of its new Blazer Electric Vehicle in late 2023 due to glitches. In June, GM appointed two ex-Apple executives to lead its software and service division. The promotions were intended to fill the void left by Mike Abbott. Another Apple veteran , Abbott joined GM in its executive vice-president of software and services. Abbott left GM for health reasons in March.
CNBC & Bloomberg were the first to report the news.
“As we plan the future of GM, we need to simplify for speed and excellence. We must make bold decisions and prioritize investments that will have a greater impact. In a press release, the company announced that certain teams in the Software and Services division would be reduced. “We are grateful for those who have helped establish a solid foundation that will allow GM to lead in the future.”
