GM cuts 1,000 software jobs as it prioritizes quality and AI

General Motors is cutting around 1,000 software workers around the world in a bid to focus on more “high-priority” initiatives like improving its Super Cruise driver assistance system, the quality of its infotainment platform and exploring the use of AI.

The job cuts are not about cost cutting or individual performance, GM spokesperson Stuart Fowle told TechCrunch. Rather, they are meant to help the company move more quickly as it tries to compete in the world of “software-defined vehicles.”

For example, Fowle said, that could mean moving away from developing many different infotainment features and instead focusing on ones that matter most to consumers.

The shuffle comes after GM has struggled with recent software problems. The automaker temporarily halted sales of its new Blazer EV in late 2023 after early vehicles encountered glitches. In June, GM promoted two former Apple executives to run its software and services division. The promotions were meant to fill the gap left by Mike Abbott, another Apple veteran who had joined GM as its executive vice president of software and services. Abbott left GM in March for health reasons.

The cuts are being made around the world, though the majority will be in Michigan, according to CNBC and Bloomberg, which first reported the news.

“As we build GM’s 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,” the company said in a statement. “We are grateful to those who helped establish a strong foundation that positions GM to lead moving forward.”