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GM announces it will lay off more than 1,000 salaried employees

GM announced more than 1,000 layoffs of salaried employees on Monday. File Photo by Jeff Kowalsky/EPA-EFE
GM announced more than 1,000 layoffs of salaried employees on Monday. File Photo by Jeff Kowalsky/EPA-EFE

Aug. 19 (UPI) -- General Motors announced on Monday that it will lay off more than 1,000 salaried workers around the world in its software and global division.

GM spokesman Kevin Kelly said the move is being made the adjust the company for future plans.

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"[GM] must simplify for speed and excellence, make bold choices and prioritize the investments that will have the greatest impact," Kelly said, according to the Detroit News.

"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 GM to lead moving forward."

It comes as GM continues to make changes in that division. Michael Abbott, who led the division, departed in March for health reasons. Edward Kummer, the chief digital officer, also left the company.

Kelly said while a significant number of cuts will be made at the company's Global Tech Center in Warren, Mich., it will still have the largest concentration of software and service workers at GM.

In June, Baris Cetinok and Dave Richardson were hired by GM to lead the software and services organization. In an email to employees, Cetinok cited increased competition and reduced duplications for the layoffs.

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"None of this make it any easier for those affected, but we wanted to be clear about how and why we made these choices," Cetinok wrote, according to the Detroit Free Press. "We believe in being transparent about this decision, which is why we're sharing the news with you."

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