General Motors (GM) has made significant workforce adjustments, cutting over 1,000 jobs globally, with approximately 600 of those layoffs centered around its Detroit headquarters. The primary impact falls on GM’s software and services division. These changes come in the wake of a recent leadership shakeup, including the departure of former Apple executive Mike Abbott. GM emphasizes that these measures are not merely cost-cutting but rather an effort to streamline operations for greater efficiency. As the automotive industry navigates challenges related to electric vehicles and software-defined technologies, automakers like GM are making strategic choices to position themselves for the future. It’s a pivotal moment for GM as they shape their path forward. Thoughts?
Are automakers running out of gas? GM is the latest company to announce layoffs after a hiring spree through early 2023 and largely voluntary attrition over the last 18 months. “As we build GM’s future, we must simplify for speed and excellence..." The line from a GM spokesperson echoes the general sentiment surrounding the impacts of rightsizing and restructurings on the tech and tech-adjacent workforce since late 2022. Companies became bloated when interest rates were low and demand and revenue were artificially inflated. Now, white-collar employees are left to carry the burden with a regression to the mean. Many companies that thrived in a zero-interest rate environment are (re)finding their footing and rebalancing following a chaotic last 4-5 years. The human capital investments at GM and Ford may have a different timeline but, it seems that the endpoint may be roughly the same... a return to early 2022 levels. Will a return to 2022 be the "new normal" for most tech and tech-adjacent companies? #GM #automotive #auto #layoffs
