GM has announced that it will close its Arizona IT Innovation Center, affecting 940 employees. The center is set to close before the end of the year. The facility originally opened in 2014.
In a statement provided to GM Authority, GM spokesperson Kevin Kelly addressed the center’s forthcoming closure:
“As part of GM’s continued transformation, and to better align our Innovation Center footprint and IT resources in the US, we have made the decision to cease our IT operation at our Chandler, Arizona, Innovation Center later this year,” Kelly told GM Authority. “Employees working in our software defined vehicle teams will remain in Arizona. Affected employees will have an opportunity to apply for open positions.”
According to GM’s corporate website, the Arizona IT Innovation center “supports GM’s IT needs including web technologies, end-user applications, dealer and factory systems and vehicle technology.” The facility is located at 2900 W Geronimo Place in Chandler, and spans some 170,000 square feet. According to data as of June 30th, 2023, the facility has a population of 1,029 employees, excluding GM Financial and Cruise.
Those employees affected by the recent job cuts will have an opportunity to apply to other openings at GM, and the company is expected to provide outplacement support. In addition, employees with at least one year with the company will be eligible for a severance package, per a report from Detroit Free Press.
The job cuts are part of new cost-cutting measures to allow GM to focus on growth areas, although specifics were not provided. GM operates three additional IT centers in the U.S., including in Atlanta, Georgia; Austin, Texas, and Warren, Michigan.
Earlier this year, GM announced a new voluntary separation program offering certain employees an opportunity to receive pay, health coverage, and other benefits for a limited time in exchange for voluntarily leaving the company. The program was part of GM’s efforts to reduce fixed costs and achieve $2 billion in savings over the next two years. It was reported at roughly 5,000 salaried workers took the offer.