General Motors announced its decision to eliminate 940 positions in its information technology sector on August 23, 2023. This workforce reduction will occur in Arizona, along with the cessation of IT activities within the state. Through these measures, the company hopes to improve operational efficiency while lowering costs.
According to GM’s official website, the Arizona facility in Chandler, located about five miles southeast of Tempe, began operations in 2014. Its primary goal is to meet GM’s IT requirements, which include web technologies, end-user applications, dealer and factory systems, and vehicle technology.
As part of its ongoing efforts to streamline operations, GM has stated that it intends to keep around 80 to 90 employees from its software-defined vehicle teams in Arizona.
At the same time, the company will consolidate its information technology operations at its existing facilities in Michigan, Georgia, and Texas. This strategic consolidation aims to improve not only operational efficiency but also collaboration and innovation among the company’s IT teams across multiple locations.
General Motors announced in April 2023 that approximately 5,000 salaried employees had opted for voluntary buyout packages as part of the company’s downsizing strategy. This initiative followed the automaker’s declaration of intent to save $2 billion in costs during the current fiscal year.
