General Motors is laying off more than 1,000 software engineers, mostly in the United States. Over the past few years, the company has been expanding its software development workforce with the expectation that new services such as connecting customers to charging stations, digital content and other non-automotive businesses will one day add billions of dollars in annual revenue. Apparently something went wrong.
Image source: General Motors
«As we build GM’s future, we must simplify for speed and excellence, make bold choices and prioritize investments that will have the greatest impact,” a GM spokesman confirmed the cuts, without giving an exact number of layoffs. It is unknown how much this decision will reduce the overall software development workforce. More than 600 programmers will be laid off at GM’s Michigan division alone.
Image source: Pixabay
Software plays an increasingly important role in controlling vehicle systems, from monitoring battery charge and handling to displaying entertainment content. The introduction of new software turned out to be very problematic for GM. Due to a negative consumer reaction to replacing Apple CarPlay with an infotainment system of its own design, the company was forced to suspend sales of the Chevrolet Blazer electric SUV. GM also encountered problems with the Cadillac Lyriq EV due to software glitches.
The massive layoff of software developers comes two months after former Apple executives David Richardson and Baris Cetinok took positions as senior vice presidents at GM.
GM’s stock price was little changed in early trading Monday despite a massive layoff of software workers.