after an examination to facilitate the unit’s AI activity.
The company’s officials declared they want to focus more on “high-priority” moves like refining General Motors Super Cruise driver support system, the quality of its infotainment program, studying the appliance of artificial intelligence, and improving its electric vehicles.
These layoffs include around 600 positions at General Motors’s tech campus near Detroit. The move comes less than six months after the management modified overseeing the operations, along with former Apple official Mike Abbott quitting the electric vehicles maker after less than a year as a result of health condition.
In a public email on August 19, a General Motors representative declared: “As we build General Motors 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 General Motors to lead moving forward.”
General Motors refused to share publically the entire number of layoffs. Still, a person close to the situation, who wanted to remain anonymous due to the private character of the information, approved that more than 1.000 employees would be laid off, together with 600 from Warren, Michigan.
According to the statement, the targeted personnel was informed on Monday morning.
The layoffs come as a result of General Motors and other automakers' attempts to reduce costs, and in numerous cases, worker headcount due to worries about an industry decline - and following their billions of dollars spent in rising markets such as AI and electric vehicles.
Developing and commercializing AI software has been a significant focusing point for automakers, along with General Motors, as it views recurrent earnings possibilities, such as membership fees to improve earnings.
The shift also comes after General Motors faced some issues with its artificial intelligence software. The company stopped the sale of its new Blazer electric vehicle in late 2023 after the first electric vehicles faced some malfunctions.
In June, General Motors advanced two ex-Apple officials, Baris Cetinok and Dave Richardson, to manage its software and service AI division. The advancements were taken to bridge the gap left by Mike Abbott.
Cetinok, an experienced software director, assists as senior vice president of software and services product administration. On the other hand, Richardson is the senior vice president of software and services engineering, supervising the AI and digital products, and the modern driver systems such as the one from the Super Cruise electric vehicle.
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