General Motors Cuts 1,000 Software Jobs to Explore Use of AI

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• GM lays off 1,000 software employees globally to focus on key projects like Super Cruise enhancement and AI exploration.
• The layoffs aim to keep GM competitive in the software-defined vehicle market, not to cut costs or due to performance issues.

General Motors (GM) is laying off about 1,000 software employees worldwide to concentrate on more important projects, such as enhancing its Super Cruise driver assistance system, improving its infotainment platform, and exploring artificial intelligence (AI). 

According to GM spokesperson Stuart Fowle, the layoffs aren’t about saving money or employee performance but are aimed at helping the company stay competitive in the growing market of software-defined vehicles.

GM Chair and CEO Mary Barra stated that the company had entered the next phase of its technology-driven transformation, which is focused on rapidly scaling new electric vehicle (EV) models and the Ultifi software platform. This transformation, she noted, would drive faster innovation and enable new and exciting customer experiences.

“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,” the company said in a statement. 

GM recently faced some software issues, which led to a change in leadership. In late 2023, the company had to pause sales of its new Blazer EV due to early problems with the vehicles. To address this, GM promoted two former Apple executives in June to take over the software and services division. These promotions were necessary after Mike Abbott, another former Apple executive who had been leading the division, left GM in March due to health reasons.

Furthermore, in March 2022, GM announced plans to make it easier to deliver software services by upgrading vehicles with a new software platform, 5G connectivity, and larger screens. They mentioned that customers might pay up to $135 a month for these services. In March this year, GM stopped sharing connected car data with LexisNexis and Verisk after a New York Times report revealed that the company had been sharing this data with those brokers.

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