GM software layoffs could signal a shift in digital transformation strategy [Video]

What might seem a pullback more likely just signals investment focused on outsourcing as opposed to payrolled workers.

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General Motors on Monday confirmed layoffs of more than 1,000 salaried employees in its software and services division, in a move that suggests enterprises are rethinking their software and digital transformation strategies. 

Meaningful analysis is difficult because GM’s internal and external comments are cryptic about the reasons for the layoffs. Various industry observers said the move almost certainly reflects a decision to outsource those software efforts to technology partners.

But GM itself said only that these software efforts were a lower priority than unidentified other business needs, and that GM choose to “prioritize the investments that will have the greatest impact.”

Internally, the company said that the shift was “not a cost-cutting measure, but rather a way to more efficiently run software operations,” the Detroit Free Press quoted GM spokesman Kevin Kelly …