GM Layoffs: ’Small percentage’ of Canadian employees part of 1,000 software jobs cut

What’s happening at General Motors?

General Motors (GM) is laying off more than 1,000 salaried employees globally, primarily in its Software and Services division, including a “small percentage” of employees at its Canadian Technical Center.

Jennifer Wright, executive director of communications at General Motors Canada, says more than 1,200 engineers will continue to work at the centre after the layoff. GM wouldn’t specify the number of Canadian workers cut. The company says it is prioritizing investments that will have the greatest impact.

Approximately 600 of these layoffs are occurring at GM’s tech campus near Detroit, Michigan. The layoffs follow leadership changes in the division, including the departure of former Apple executive Mike Abbott in March.

Official statements and context

Following Abbott’s departure, Baris Cetinok and Dave Richardson have taken leadership roles within the division, focusing on software roadmap design, engineering, and advanced driver-assistance systems.

• GM’s decision is part of a broader effort to streamline operations and prioritize investments.
• A GM spokesperson stated, “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,” and “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.”
• The layoffs represent about 1.3% of GM’s global salaried workforce, which stood at 76,000 at the end of the previous year.
• The automotive industry is facing pressure to cut costs and reduce headcount while simultaneously investing heavily in emerging markets such as electric vehicles and software-driven technologies.

Your rights

In Canada, non-unionized employees at General Motors are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working in any capacity — full-time, part-time, hourly, or potentially even independent contractors — in Ontario, Alberta, and British Columbia.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause, and can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements in a recession

Major layoffs continue

The job cuts come amid a flurry of layoffs in 2024.

Big names, including Intuit, UiPath, Dyson, Vancity, Stifel, SAP Canada, Netflix, AmDocs, EXL Service, Best Buy, Relic Entertainment, Ubisoft, Intel, Amazon, and Telus, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Shell to lay off 20% of deals division, part of restructuring
• Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.