GM cuts over 1,000 workers from software business

General Motors (GM) is cutting more than 1,000 employees globally in its software and services division, a partial reversal of a hiring binge in recent years, The Wall Street Journal on Monday quoted a person familiar with the matter as saying, reported Xinhua.

The cuts include roughly 600 people who are based around the company's Detroit-area headquarters, while a total number of layoffs couldn't be learned, according to the report.

GM has hired thousands of salaried workers in software and other tech realms in recent years. Traditional automakers are aiming to develop smarter vehicles that can be updated much like smartphones, it said.

"The reduction comes about two months after GM appointed a pair of former Apple executives to lead its division focused on the digital aspects of its business, such as connected vehicles, infotainment and advanced driver-assistance systems," it noted.

In June, GM promoted two former Apple executives, Baris Cetinok and Dave Richardson, to run its software and services business. Both men were hired last year under Mike Abbott, another former Apple executive who stepped down as GM's software chief in March, citing health reasons.

The job cuts came after Cetinok and Richardson did a review of the automaker's software division and decided to streamline its operations, the person with knowledge of the cuts was quoted as saying.

GM and other legacy automakers have raced in recent years to catch up to competitors such as Tesla and China-based electric-vehicle startups with software that can add features or improve the vehicle's operation via wireless updates, according to the report.

Car companies are pursuing revenue growth by persuading car owners to sign up for vehicle updates and services, such as hands-free driving and other features that automate some functions in certain situations, it added.