General Motors has laid off hundreds of salaried employees in its software and service departments.

CNBC reported Monday that the automaker made the drastic cutdown following its plan to prioritize investments. Less than six months have passed ever since the automaker's operations were reorganized under a new leadership.

Due to health-related reasons, Mike Abbott, former Apple executive, left the company in March.

A spokesman from General Motors also shared an emailed statement saying that GM is currently focused on establishing its future and aspects such as speed and excellence are major contributing factors to making big decisions.

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The spokesman added that GM will now prioritize the investments that would bring "the greatest impact" to the company. This resolve also led to a reduction of certain teams inside GM's software and services departments.

The spokesman expressed gratitude to those who have helped GM establish its strong foundation. Interestingly, GM has declined to reveal the exact number of laid-off employees.

However, CNBC reported, citing a source, that more than 1,000 salaried staff members were let go. The figure reportedly includes around 600 workers in Warren, Michigan. General Motors has a salaried workforce of 76,000 at the end of 2023, and the latest cutdown represents 1.3% of the community.

Given the fast evolution of the digital age, automakers have been heavily focused on integrating software into their vehicles. Both software and service departments greatly contribute to a company's capability to implement advanced features and infotainment.

Abbott was replaced by GM executives Baris Cetinok and Dave Richardson. Cetinok is a veteran software executive, who oversees the software and services product management, program management and design.

Meanwhile, Richardson is the vice president of software and services engineering. The official also handles areas such as the production of digital products and advanced driver-assistance systems.

In other news, General Motors has recalled 21,469 electric SUVs due to braking system issues. The National Highway Traffic Administration (NHTSA) disclosed that the affected units were the 2023-2024 Cadillac Lyriq models.

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