General Motors (GM) has announced the layoff of more than 1,000 salaried employees worldwide in its software and services division.

The job cuts, which include approximately 600 positions at GM's tech campus near Detroit, come as part of a restructuring effort to streamline operations within the unit.

A GM spokesperson stated, "As we build GM's future, we must simplify for speed and excellence, make bold choices, and prioritise the investments that will have the greatest impact."

The company emphasised that the layoffs were not driven by cost-cutting measures but rather resulted from an operational review following leadership changes in the division.

The cuts represent about 1.3 per cent of GM's global salaried workforce, which stood at 76,000 at the end of last year. The software and services division covers a wide range of areas, including infotainment systems, the OnStar brand, and emerging technologies such as subscriptions and advanced vehicle features.

The restructuring comes less than six months after leadership changes in the division, including the departure of former Apple executive Mike Abbott, who left the company in March due to health reasons after less than a year in his role.

GM has been focusing heavily on software development and monetisation as it eyes recurring revenue opportunities to boost profits. The automaker, like many in the industry, is navigating the challenges of investing billions in emerging markets such as electric vehicles and software-defined vehicles while also preparing for potential industry downturns.

The layoffs reflect the broader challenges facing automakers as they attempt to balance cost management with significant investments in new technologies. GM's move underscores the ongoing transformation within the automotive industry as companies adapt to changing market demands and technological advancements.

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