General Motors (GM) is trimming its workforce, focusing on its software and services division. This move comes as the automaker aims to streamline operations and prioritize key investments.
The layoffs are hitting close to home for many in Warren, Michigan, a community of roughly 137,000. That’s where GM’s Global Technical Center is located, and it’s where 600 employees are facing job cuts. The community already faces a 4.5% unemployment rate which will clearly be rising.
The layoffs don’t stop there. While GM hasn’t given an exact number, reports suggest that over 1,000 workers worldwide could be affected.
Working at General Motors means waking up to a mass layoff email, saying "you'll get another email detailing whether or not your position has been affected"
AN HOUR between those emails. Imagine my stress & anxiety as a lay in bed wondering if I'll be unemployed by days end
— Scott (@HERNIAT0R) August 19, 2024
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Why is GM making these cuts? The company says it’s all about staying competitive. In their words, they need to “simplify for speed and excellence, make bold choices, and prioritize the investments that will have the greatest impact.”
This shake-up comes on the heels of recent leadership changes. In June, Baris Cetinok and Dave Richardson took the reins of the software and services unit. CEO Mary Barra had high hopes for them, stating, “They bring energy and vision, combined with extensive technical and management experience, that will continue to strengthen our software engineering and product teams.”
To put things in perspective, GM is a big player. At the end of 2023, they had 76,000 salaried workers and 87,000 hourly workers. That’s more people than you’d find in a small city!
Despite these cuts, GM’s financial engine is still running strong. In the second quarter, they pulled in nearly $48 billion in revenue and pocketed $2.93 billion in net income. That’s no small change.
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The auto industry is constantly shifting as technology becomes more predominant. Unfortunately, communities that depend on automakers get hardest hit with the ebbs and flows.