Automaker General Motors (GM) will slash its workforce by more than 1,000 employees, according to multiple reports. The job cuts will primarily be focused on the company’s Software and Services division.
The layoffs are reportedly not part of the company’s cost-cutting strategy. Instead, the decision was made after a review of the unit following the departure of Software and Services Executive Vice President Mike Abbott. The GM’s goal is reportedly to streamline the division’s operations and make it more efficient.
CNBC reports that around 600 laid-off workers are part of the operations at GM Technical Center in Warren, Michigan. The company has 76,000 salaried workers on a global level and 53,000 salaried workers in the United States.
GM notified the affected employees about their status on Monday. The company also publicly confirmed the layoffs but didn’t specify how many workers will lose their jobs.
“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,” a GM spokesperson said in a statement sent to media outlets via email.
GM’s stock has seen a slight jump after the news came out, inching up by 1% on Monday. The company’s shares are up more than 27% year-to-date.