GM Streamlines Software and Services Unit, Lays Off 1,000

General Motors laid off over 1,000 salaried employees in Software and Services, its division focused on infotainment, OnStar, subscriptions and other emerging features.

The employees impacted by the layoffs were notified Monday (Aug. 19), CNBC reported, citing unnamed sources. GM confirmed there had been layoffs but did not disclose the number, according to the report.

“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 spokesperson said in the report. “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.”

The move follows the automaker’s review of the unit’s operations and comes less than six months after the unit saw leadership changes, according to the report.

The changes included the departure of Mike Abbott, a former Apple executive who became GM’s first executive vice president of software in May 2023 and left that role in March for health reasons, per the report.

Abbott was succeeded by two other former Apple executives — Baris Cetinok and Dave Richardson — who reviewed the software division and decided to streamline it, The Wall Street Journal reported Monday.

When announcing Abbott’s appointment in May 2023, GM said he would lead a team that brought together three software functions that were distinct at the time and that the newly consolidated organization would develop vehicle and enterprise software technologies and solutions and deliver digital services and features to retail and commercial customers.

“We have entered the next phase of our technology-driven transformation focused on rapidly scaling new [electric vehicle (EV)] models and our Ultifi software platform, which will drive faster innovation and enable new and exciting customer experiences,” GM Chair and CEO Mary Barra said at the time.

GM said in March 2022 that it aimed to facilitate the delivery of software services by adding its software platform, 5G connectivity and larger screens to vehicles. It said consumers may pay up to $135 a month for these services.

In March, GM stopped sharing connected car data with LexisNexis and Verisk. The move followed a New York Times report that the automaker had been sharing that data with the data brokers.

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