General Motors is eliminating 940 salaried positions as it shuts down its Arizona IT Innovation Center by the end of October.
The automaker said it gave notice to about 200 engineers, almost a week after news comes that their positions were eliminated.
GM informed the 1,029 nonunion workers at the Arizona IT Innovation Center about the decision to eliminate the majority of the positions on Wednesday. This was followed by a companywide email, which the Detroit Free Press acquired.
Today, we announced a difficult decision to cease operations of the Information and Digital Technology (IDT) at the Arizona Innovation Center by the end of October. Lynett Stacy, the President and Vice GM of Operations Technology Digital and Information, wrote that we still need the support of the company to continue gaining effectiveness and efficiencies, and to optimize our innovation center’s footprint. It was not an easy decision, but we believe it will help us in the long run.
Lynett stated, “Individuals who have been employed by the company for a minimum of one year will qualify for a severance package.” She mentioned that GM will offer assistance in finding new employment opportunities, and employees who are laid off can apply for other positions within GM. Lynett communicated that all roles related to information and digital technology are being eliminated at the center in order to streamline operations and allow GM to concentrate on its areas of growth, although she did not provide further clarification on this matter.
GM spokesman Kevin Kelly confirmed the layoffs, stating that a portion of the employees at the facility who are involved in automotive software will retain their positions. Approximately 940 individuals will be laid off, while the remaining employees will be let go. Kelly clarified that the closure is not primarily aimed at reducing costs, but rather at improving operational efficiency.
Kelly mentioned, “We are streamlining the quantity of IT innovation centers we possess in the nation. However, while examining effectiveness, there were a few duplications and that is the reason we opted to eliminate one of the centers. We are retaining the remaining three.”
According to GM’s website, the Arizona facility was established in 2014 and is situated in Chandler, approximately 5 miles southeast of Tempe. The website stated that it “caters to GM’s IT requirements, encompassing web technologies, applications for end-users, systems for dealerships and factories, as well as vehicle technology.”
GM’s three additional IT centers are located in Warren, Michigan; Austin, Texas, and one more in the outskirts of Atlanta.
“The company has found success in recruiting many positions available at entry level from universities in the area, and when it opened the site in 2014, it specifically selected Chandler as part of its strong local workforce. GM noted that it was looking to hire several hundred employees for software-based positions at the center, stating in a post on Chandler’s city website in February 2022. This move comes after GM had been expanding its presence at the Chandler center.”
In the email, Lynett mentioned that GM would be developing a strategy to shift certain tasks from the Arizona IT Center to other locations.
Lynett stated in the GM email that we will collaborate with specific executives to develop a strategy for transferring work and expertise as we proceed with the restructuring of the organization. This includes providing updates to employees under an Arizona leader and reorganizing teams. I am optimistic that, collectively, we can figure out ways to successfully execute our most important projects.