GM Lays Off More Than 1,000 Software Employees, May Reconsider Eliminating Apple CarPlay

Update: GM denied the layoffs had anything to do with its decision to drop Android Auto and Apple CarPlay support in newer models Electric vehicle models. “As we build GM's future, we must simplify for speed and excellence, make bold choices, and prioritize investments that will have the greatest impact. As a result, we are reducing some teams within the Software and Services organization. We are grateful for those who have helped establish a solid foundation that positions GM to lead the way into the future,” wrote Kevin M. Kelly, GM Senior Director of Corporate News Relations, in an email to autoevolution.

The original story continues below:

There are three automakers that do not offer Apple CarPlay and Android Auto support: Tesla, Rivian, and GM. However, they are not equal, as the first two never had or promised it, while GM chose to discontinue the feature at the risk of alienating its customer base. The reasons behind this move are more control over the software, especially driver data, and the promise of a new revenue stream as they want to expand into subscriptions.

While Tesla has made Apple CarPlay and Android Auto redundant by offering an equally good (or better, by some accounts) software experience, GM has never distinguished itself as a software company. GM’s wet dream was to monetize software features through subscriptions worth tens of billions of dollars annually by 2030. To make it work, GM announced it would drop support for phone projection and build a capable software team under the leadership of Mike Abbott, a former Apple executive.

However, those plans fell apart after Abbott announced his departure for health reasons in March. A month later, Edward Kummer, the man behind General Motors’ controversial anti-CarPlay and Android Auto strategy, decided to leave the company. It looks like GM’s bet on in-house Android Automotive software will not pan out. In a new move, GM has decided to significantly cut its software and services workforce.

The automaker announced it is laying off more than 1,000 salaried employees globally in its software and services division. The layoffs include about 600 jobs at GM’s Global Technical Center in Warren, Michigan, near Detroit. The massive layoffs represent about 1.3% of the company’s global salaried workforce, which stands at 76,000 at the end of 2023. Such a massive workforce cut will undoubtedly impact GM’s plans to develop software in-house. It could, in fact, trigger a reversal of the decision to block Apple CarPlay from GM’s newest vehicles.

GM is already facing backlash from its customers for its lack of support for car projection. Its Android Automotive OS skin has proven to be a nuisance, leaving owners stranded in the middle of nowhere. GM had no choice but to halt deliveries until it came up with a solution. However, it has continued to insist that its software is better and more secure than using your smartphone with Apple CarPlay and Android Auto projection.

Rivian is also going down this same path, trying to replace Apple CarPlay and Android Auto functionality with native apps running on its heavily skinned Android Automotive operating system. When it launched the Connect+ package, it became clear that it was all about monetizing software subscriptions. Even though the Connect+ package is only $15 a month ($150 a year) and offers a lot of value, Rivian owners are already up in arms.