General Motors Layoff 1000 Employees From The Software And Services Division

General Motors (GM) has announced that it will reduce the number of employees in the software and services division. The reason for the dismissal of more than 1,000 employees is to increase investment in new technologies while maintaining profitability.

According to the French agency AFP, the Michigan-based auto giant reportedly plans to make 600 of those 1,000 layoffs at GM’s technology campus near Detroit. GM confirmed the layoffs but did not disclose the exact number of people who will lose their jobs. As the GM spokesperson explained, to build the future, companies must make bold decisions and prioritize investments that will have the greatest effect.

“As a result, we are reducing the size of certain teams within the software and services organization,” the spokesperson said. According to official data, the auto giant had around 76,000 employees and 87,000 part-time workers at the end of last year.

In July, GM reported a rise in quarterly profit after sales increased in North America, offsetting continued weakness in China, where it faces tough competition.

Although the company has reduced some investments in electric vehicles and self-driving cars, they are still a source of large expenses. GM committed to cutting costs by $2 billion. In June, GM also approved a new share buyback program worth six billion dollars, AFP reminds.

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