General Motors is reportedly cutting over 1,000 jobs in the services and software sector, multiple media reports say. Confirming the development, the auto giant said, “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."
However, GM did not specify the as to how much the current layoffs will impact the overall software engineering workforce in the group.
A Bloomberg report said that over 600 layoffs will be in Michigan. The fresh round of job cuts come months after ex-Apple executives Baris Cetinok and David Richardson were promoted to senior VP roles in group.
A CNBC report said that the GM layoffs are roughly 1.3 percent of automaker’s global salaried workforce of 76,000. The report also said that the staff impacted by the layoffs were informed about it via mail on Monday.
The layoffs come amid new efforts by the automakers to lower the costs in wake of downturn fears. Many are now splurging billions on emerging so-called software-defined vehicles and EV markets, the CNBC report said.
A recent Reuters report had said that several US and Canadian companies are continuing with the layoffs as they remain uncertain about the economic conditions amid geopolitical tensions. Tech sector has seen more layoffs world over.
The Reuters report said that Intel will be laying off over 15 percent of its workforce, some 17,500 people, as the chipmaker pursues a turnaround focused on its money-losing manufacturing business.
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