General Motors is laying off over one thousand employees globally as part of an effort to streamline its software and services unit. This equals about 1.3 percent of GM’s 76,000-strong workforce. The impacted employees include 600 from the company’s tech campus near Detroit, with about 53,000 employees working in the US. The company aims to simplify operations to improve speed and prioritize impactful investments.
Auto makers globally are trying to cut costs due to fears of an industry slowdown and an increasing focus on electric vehicles. Media reports have suggested that General Motors is also restructuring its operations in China after recording losses of $104 million in the second quarter. The company has reiterated its commitment to remaining profitable and self-sustainable in China despite challenges from local auto makers. This situation has prompted GM to work with its Chinese joint-venture partner to restructure and cut costs.
