General Motors Cuts 1000 Jobs in Software and Services
General Motors announced today that it is laying off more than 1000 employees worldwide. The cuts come to salaried staffers in the company’s software and services division, with about 600 of those cuts taking place at GM’s Global Technical Center in Warren, Michigan, outside of Detroit.
In a memo, a GM spokesperson 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. 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 comes four months after the departure of Mike Abbot, vice president of GM’s first dedicated software division, who left the company for health reasons. He was succeeded in the role by David Richardson and Baris Cetinok. Richardson, vice president of software and services engineering, oversees software-defined vehicle development, software quality and testing, cloud platforms, web and mobile, IT, and advanced driver-assistance systems such as Super Cruise. Cetinok heads up the software and services product management, program management, and design departments.
In 2023, GM took a highly publicized—and much criticized—step away from Apple Carplay and Android Auto, phasing out such connectivity in all future cars citing, among other reasons, poor connection issues and driver safety. Skeptics cited GM’s own desire to develop and monetize a subscription-based model to deliver such services to its customers, a model GM CEO Mary Barra believes will be worth around $25 billion in revenue by 2030.
GM has been in cost-cutting mode over the last two years. In February 2023, the company cut hundreds of executive-level and salaried positions; two months later it offered buyouts to around 5000 more salaried employees.
GM currently employs a salaried workforce of 76,000 people worldwide; today’s cuts represent 1.3 percent of that workforce.
The auto companies are clueless when it comes to software. All they see is the ability to reduce 3rd party software costs. But they have no where near the sophistication of the average software ( and for that matter silicon ASICs hardware) of even a mediocre Silicon Valley vendor. Stories abound of software failures stranding motorists and even worse due to poorly engineered software code by the auto compsnies. And no one addresses the real elephant in the room: no regulations to insure software access by third parties once a manufacturer decides not to support it anymore. In some cases that happens in as little as 7 years, and there is no government regulation on the time of support. What a convrnient way to insure your older product becomes obsolete regardless of whether it has 200K miles or 10K miles.
All the Automakers are in bad shape. They are all baking cuts and we will see more mergers and partnerships.
As for GM and electronics. Some things they try to do in house but wisely they also just Ho to companies like lag to build. Design and program digital dashes.
They get it right at time but then the make a left turn on other parts and project.
“simplify for speed and excellence”
Blech. Is it AI or Indians? Just give up on electronics altogether and keep building the 2000’s Chevy truck with the 6.0. Throw a Pioneer head unit in the dash if you have to. If you marketed it with balls you would put Ford’s complicated turbo trucks out of business. You would print enough money to pay off Big Brother.
If only it was that simple. Today it takes every bit of tech to make these models meet regulations. With the coming regs it is going to force EV product like it or not.
Even if the EPA backs off if the CARB states hold their ground it would still force a big move to the EV since they are near 1/2 the American market.
Ev’s according to statistics is only 2 percent of the automotive market. While they have increased, I don’t see 50 percent of the cars in the area as being electric. I do see a lot more hybrids and feel that would be the way to go as you won’t be waiting half an hour to fuel up.
So the software gets the cuts. Does that mean they are finally getting wise on cutting back on subscription crap? We’ll have to wait and see.
Probably not. I don’t think they’re going to put that cash cow out to pasture as per Barra’s own words: “GM CEO Mary Barra believes will be worth around $25 billion in revenue by 2030.”
This is a classic move to reduce costly headcount by outsourcing to indentured offshore workers getting paid 5% for the same work.