GM confirms it will cut more than 1,000 software and services jobs

By Tomi Kilgore

The cuts come two months after GM promoted two former Apple execs to head the software and services business

Shares of General Motors Co. were headed for a fifth straight gain Monday after the carmaker confirmed there will be layoffs in its software and services division.

"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," GM said in an emailed statement to MarketWatch. "As a result, we're reducing certain teams within the Software and Services organization."

GM (GM) did not say in its statement how many jobs would be cut, but it did say an earlier report in the Wall Street Journal that more than 1,000 employees would be laid off was "accurate."

The report said the layoffs would include around 600 employees at GM's Detroit-area headquarters.

The stock rose 0.3% in morning trading. It has climbed 5.7% amid its current five-session winning streak and has run up 16.2% since it closed at a five-month low of $39.95 on Aug. 5.

The job cuts come a little more than two months after GM announced the promotion of two former Apple Inc. (AAPL) executives to head up its software and services division.

Baris Cetinok, who launched Apple Pay, Apple Cash, Apple Car and iCloud services at Apple, and Dave Richardson, who was responsible for driving innovation in Apple services such as iCloud, FaceTime and Siri, both joined GM in September 2023.

"GM's journey toward a tech-forward future is clearer than ever, thanks to the exceptional talent within our team and the leadership of Baris and Dave," GM Chief Executive Mary Barra said at the time of their promotions.

GM's stock has rallied 26.5% year to date, while shares of rival Ford Motor Co. (F) have dropped 13.2% and the S&P 500 SPX has advanced 16.7%.

-Tomi Kilgore

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08-19-24 0957ET

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