GM Cuts 1,000 Software Jobs for AI Focus

General Motors is eliminating approximately 1,000 software positions globally to concentrate on high-priority projects such as enhancing its Super Cruise driver assistance system, improving its infotainment platform, and advancing AI applications

Stuart Fowle, a spokesperson for General Motors, informed TechCrunch that the employment cuts are not motivated by cost savings or individual performance.

Instead, they are intended to facilitate the company’s ability to operate more efficiently in its pursuit of success in “software-defined vehicles.”

For instance, Fowle suggested that this could entail shifting the focus from developing many infotainment features to those most important to consumers.

The reorganisation follows GM’s recent challenges with software. In late 2023, the automaker temporarily suspended the sale of its new Blazer EV due to technical difficulties experienced by early models.

General Motors promoted two former Apple executives to lead its software and services division in June.

The promotions were intended to compensate for the vacancy left by Mike Abbott, an additional Apple veteran who had assumed the role of executive vice president of software and services at General Motors. In March, Abbott departed GM due to health concerns.

CNBC and Bloomberg, which initially disclosed the information, have reported that the reductions are being implemented globally; however, Michigan will constitute most of them.

“In constructing GM’s future, it is imperative that we prioritise the investments that will have the greatest impact, make bold choices, and simplify for speed and excellence.”

The company announced in a statement that it is reducing the size of specific departments within the Software and Services organisation. “We appreciate the individuals who contributed to establishing a robust foundation that enables GM to continue to lead in the future.”