General Motors Company GM Shares are trading higher today amid reports the company is laying off over 1,000 permanent employees in its software and services division worldwide as part of a review to streamline operations.

The layoffs affect about 1.3 percent of GM’s global workforce, which employed 76,000 people at the end of last year, including about 53,000 U.S. employees, CNBC reported.

The layoffs, which affect around 600 jobs at GM’s technology campus near Detroit, are a result of recent leadership changes in the department. According to the report, the company informed the affected employees on Monday morning.

The job cuts reflect automakers’ goal of cutting costs and staff amid concerns about an industry downturn while investing billions in emerging markets such as electric vehicles and software-defined vehicles.

The report quotes an emailed statement from a GM spokesperson: “As we shape GM’s future, we must simplify for speed and excellence, make bold decisions and prioritize the investments that will have the greatest impact.”

“As a result, we are reducing certain teams within the software and services organization. We are grateful to everyone who helped build a solid foundation that will enable GM to continue to lead in the future.”

Last week, GM reportedly announced that it is reducing staff and planning job cuts in China, with a focus on strategic realignment and possible capacity cuts at SAIC.

The car manufacturer is reducing its production because many foreign brands are facing strong competition from domestic companies in the world’s largest car market and are currently struggling with significant overcapacity there.

In June, the company promoted former Apple executives Baris Cetinok and Dave Richardson to succeed former Executive Vice President of Software and Services, Mike Abbott, the left GM in March 2024.

Investors can participate in the share via the First Trust Nasdaq Transportation ETF FTXR And the Invesco S&P 500 Pure Value ETF RDB.

Price promotion: GM shares rose 0.65% to $45.62 at last check Monday.

Disclaimer: This content was created in part using AI tools and reviewed and published by Benzinga editors.

Photo by Jonathan Weiss on Shutterstock

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