General Motors has issued layoff notices to more than 1,000 salaried workers worldwide, specifically in its Software and Services division, according to multiple reports. The layoffs reportedly include 600 employees at the GM Technical Center in Warren, Mich. The decision comes as the industry faces falling consumer demand for new vehicles, and other automakers adjust production levels in response to the demand.
Recently, Stellantis reduced production from two daily shifts to one at its Warren, Mich., Truck Assembly Plant as it phases out one of its pickup models.
Reportedly, GM’s layoffs follow a review to streamline operations in that high-tech division, which has expanded in recent years as the automaker invested heavily to develop electric vehicle technologies and subscription-based functions for diagnostics, emergency services, infotainment, navigation, and security.
General Motors has been investing heavily to develop and implement electric vehicle technologies, including new and remodeled manufacturing plants, joint-venture developments, and research centers.
In April GM reconfirmed its commitment to transition its portfolio fully to electric vehicles by 2035, despite apparent falling demand for EVs and moves across the industry to modify vehicle offerings to include lower-cost EVs and more hybrid-electric options.
"We still believe in an all-electric future," GM CEO Mary Barra announced earlier this year. The automaker has committed $35 billion of investments (2020-2025) for new and updated capabilities to make the transition, including its participation in the development of the Ultium lithium-ion battery technology platform.
“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,” a GM spokesman said in a statement to CNBC. “As a result, we’re reducing certain teams within the Software and Services organization. We are grateful to those who helped establish a strong foundation that positions GM to lead moving forward.”
