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General Motors is cutting more than 1,000 software employees worldwide as part of a restructuring of the company's software and services divisions. The massive layoffs cover multiple GM locations around the world, but are primarily concentrated in Warren, Michigan, USA.

A factory in Belvedere, USA, was closed indefinitely by General Motors in February 2022.

Affected employees, including about 600 positions at the Warren Technology Park, were notified Monday morning, according to a source familiar with the matter.

The layoffs affect about 1.3% of GM's global salaried workforce. Data shows that as of the end of 2023, GM has about 76,000 employees, including about 53,000 salaried employees in the United States.

In addition, GM is also facing software problems in infotainment systems and other digital products, which accelerates the need for efficient and high-quality software solutions. For example, GM suspended sales of its new Blazer EV at the end of 2023 because early vehicles encountered technical failures. Last week, GM was also sued by the local procuratorate for allegedly illegally selling driving data in the North American market.

Thanks to strong demand for traditional gasoline-powered SUVs and pickup trucks in North America, GM delivered a brilliant financial performance in the second quarter of 2024. The company's global net profit increased by 14% to US$2.9 billion, and global revenue increased by 7.2% to a record US$47.97 billion. GM has therefore raised its full-year financial expectations, with adjusted EBITDA forecast raised to US$13 billion to US$15 billion.

On the other hand, GM faces challenges in the fields of new energy and autonomous driving.

In the US market, GM's electric vehicle sales in the second quarter increased by 40% year-on-year, but due to lower-than-expected demand, the company lowered its full-year electric vehicle production target. Cruise, an autonomous driving subsidiary, saw a smaller loss year-on-year, but still reported a quarterly loss of more than $450 million.

Beijing Business Daily Comprehensive Report