GM cuts salaried positions including in software, services at Warren Tech Center

GM position cuts include reported 600 from Warren Tech Center

General Motors says it’s building toward the future. But the future apparently means less jobs in its workforce — including a number of position cuts at GM’s Warren office.

WARREN, Mich. (FOX 2) - General Motors says it’s building toward the future. But the future apparently means less jobs in its workforce — including a number of position cuts at GM’s Warren office.

The Detroit News reports 1,000 salaried employees worldwide — including 600 at its Global Technical Center in Warren.

While GM would not confirm the exact number, a spokesperson said in a statement that the Big 3 giant is focused on the future.

"We must simplify for speed and excellence, make bold choices, and prioritize the investments that will have the greatest impact. 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."

"Employees when they’re laid off, a high percentage of them tend to either move or drop out of the labor force," said Dr. Michael Greiner, professor, Oakland University. "I think that’s a concern."

FOX 2: "We keep seeing waves of layoffs. We know it can be somewhat common in the automotive industry, but why does it seem like we’re seeing more lately?"

"The automotive industry is dealing with some challenges right now," Greiner said. "They had the whole issue with the transition due to the Covid recession. That kind of wreaked havoc with inventories."

Griener is a professor of management at Oakland and also worked in Warren. He says GM is considered a big fish in that community.

Last year, GM cut 1,300 jobs at two of its Michigan factories. But General Motors isn’t the only Big 3 automaker forced to make cost-cutting measures, as these companies adjust from gas-powered vehicles to electric.

Both Ford and Stellantis have cut hundreds, and up to thousands of positions in the past year.

For some of the smaller Metro Detroit communities, it creates a trickle-down effect on local mom-and-pop shops.

FOX 2: "Explain the impact that the workforce brings not just to the offices there, but to Warren and Metro Detroit."

"The incomes of the employees there have what we call a multiplier effect, which means it’s money coming from outside the community," Greiner said. "The difference that we have with these jobs is that if these employees get a job somewhere else, they might not be coming back to Warren. They might not be coming back to Macomb County."

While GM wouldn’t confirm which other locations would be impacted, the Detroit News reports employees will be laid off in California, Texas, and Canada.