General Motors (GM), the American automaker is preparing to eliminate jobs in Israel. In fact, it has reportedly begun hearings and summoned employees for the same at its development centre in Herzliya, which employs 700 people. As part of a reorganization of its software division, dozens of employees were let go in August last year.
The latest job cuts at its global hub are said to have been triggered by the recent closure of GM’s autonomous vehicle subsidiary, Cruise.
With the demand for electric vehicles (EVs) slowing down, the company is undergoing restructuring worldwide and reassessing its situation. With the closure of Cruise there has emerged an urgent need to address redundancy and do away with overlapping roles. The objective is to trim the autonomous vehicle tech team and ensure that the Israel team focuses on research and development (R&D), cyber, fleet, engagement services, connected camera and viewing, and DevOps.
Layoffs have taken place at various locations across the US too in recent times, as part of cost-cutting efforts.
Cruise, the subsidiary, was shutdown recently and integrated into the parent firm. Cruise has been facing a lot of challenges of late, including safety episodes, financial strain as well as regulatory assessments. led to considerable role duplication across GM’s global operations, prompting redundancies in overlapping positions, including those in Israel.
