GM Lays Off 1000+ Software Engineers in Favor of AI

Just today, CNBC reported that GM laid off more than 1,000 workers from the company and most of them were salaried software and services employees.

We are seeing yet another huge layoff news coming from another automotive giant after Tesla today which is cutting more than 600 jobs in the tech campus of GM (General Motors) near Detroit and 400+ from its Services division.

This latest job cut by GM accounts for 1.6% of the global workforce which in total was 76,000 and now about 74,000+ after these layoffs and this was reported to employees Monday morning.

Why these layoffs?

Well, every next company is trying to cut expenses and the best way is to cut jobs by relying more on Artificial Intelligence than human workers. GM is also diving into this sea of AI world by saving millions of dollars while they are already spending billions to make autonomous and all-electric vehicles.

This has to happen.

People are in doubt as layoffs are here from GM when software is becoming their main development area and they are firing software engineers, they must be doing something unique here.

We might have an accurate answer here as TechCrunch reported:

GM spokesperson Stuart Fowle told TechCrunch. Rather, they are meant to help the company move more quickly as it tries to compete in the world of “software-defined vehicles.”

But wait, here’s what they (GM officials) said in the latest statement:

"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 spokesman said in an emailed statement. 

"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."

Most of the affected employees were from Warren, Michigan, and the rest from GM's global workforce.