Over 1000 software employees at General Motors, a US-based automotive company, have reportedly lost their jobs.
This is as the company says it aims to simplify its production speed and excellence.
In a statement, the company, while confirming the layoff to news men on Monday, disclosed that the affected employees were majorly those associated with its software and service units worldwide.
It also noted that while about 600 employees affected by the job cut were those at its tech campus near Detroit, a majority of the cuts are in the United States.
It however disclosed that the action was not in a bid to cut cost but clarified that the action became necessary following a review of operations that followed the departure of its executive vice president of software and services, Mike Abbott who left the company in March due to health reasons.
According to reports, Abbott, who is a former Apple executive, was hired in 2013 when GM company made huge monetary investments in electric vehicles and subscription-based services.
His wealth of experience and expertise was expected to play a significant role in the company’s developmental bid as he was tasked with the responsibility of overseeing the company’s software development efforts. He served in that capacity until his health challenge compelled him to retire abruptly.
GM appears still resolute with its initial motives despite the Abbott’s exit.
“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,” the company said in a statement.
Recall that in April 2023, GM said about 5,000 of its salaried workers took buyouts to leave the company as it worked to hit a $2 billion cost-cutting target after it cut hundreds of executive-level and salaried jobs in February 2023.
