TL;DR
GM has laid off approximately 600 IT employees, about 10% of its IT workforce, to make room for new hires with expertise in AI-native development, data engineering, and cloud-based AI workflows. The move reflects a strategic shift toward AI-driven innovation.
General Motors has laid off more than 600 IT employees, approximately 10% of its IT workforce, as part of a strategic shift to focus on AI capabilities, confirmed by the automaker to TechCrunch. The layoffs, first reported by Bloomberg, are aimed at restructuring the company’s technology team to better align with future AI-driven initiatives.
GM confirmed to TechCrunch that it conducted layoffs affecting over 600 salaried IT employees. The company described these layoffs as part of a broader effort to transform its IT organization to better prepare for the future. While these layoffs are significant, they are not all permanent reductions; GM is still hiring for new roles, but with a focus on skills related to AI-native development, data engineering, cloud-based systems, and AI workflows. A source familiar with the matter indicated that GM is seeking talent capable of building AI systems from the ground up, including training models and developing pipelines, rather than merely deploying AI tools.
Over the past 18 months, GM has made several workforce changes in its software division, including a recent cut of about 1,000 software workers in August 2024. The company’s leadership has emphasized AI as a key focus, with recent hires such as Behrad Toghi, an AI lead from Apple, and Rashed Haq, a former AI head at Cruise, GM’s autonomous vehicle subsidiary. The restructuring aligns with industry trends where large enterprises are not just adding AI tools but rebuilding teams around AI-native skills to drive innovation and automation.
Why It Matters
This move signals a significant shift in enterprise technology strategy, highlighting how major automakers like GM are prioritizing AI expertise to stay competitive in autonomous vehicles, smart manufacturing, and data-driven services. It underscores the importance of specialized AI skills in future tech development and indicates a broader industry trend toward workforce transformation to accommodate AI-driven workflows.
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Background
GM has been actively restructuring its software and AI teams over the past year. In May 2025, GM hired Sterling Anderson as chief product officer to lead its software efforts, and since then, several high-level executives have left or been replaced to focus on AI. The company’s recent layoffs follow a pattern of trimming traditional software roles while emphasizing AI-native skills, reflecting a strategic pivot from conventional IT to AI-centric development. This shift is part of GM’s broader effort to integrate AI into its autonomous vehicle development, manufacturing, and digital services.
“GM is transforming its Information Technology organization to better position the company for the future.”
— GM spokesperson
“The company is still hiring for roles in its IT department, but for different skills, especially in AI-native development and data engineering.”
— Source familiar with GM’s hiring plans
“Our focus is on building AI systems that can operate autonomously and efficiently, which requires specialized talent.”
— Rashed Haq, VP of autonomous vehicles
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What Remains Unclear
It is not yet clear how long the layoffs will impact GM’s overall workforce or whether additional restructuring efforts are planned. The full scope of the new roles GM intends to fill and the timeline for these changes remain undisclosed, and the specific projects that will benefit from the new hires are still emerging.
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What’s Next
GM is expected to continue hiring for AI-focused roles, with upcoming initiatives likely to include the development of autonomous vehicle systems, AI-driven manufacturing processes, and digital services. Monitoring GM’s employment trends and project announcements will provide further insight into the company’s AI strategy.
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Key Questions
Why did GM lay off so many IT workers?
GM laid off over 600 IT employees to restructure its workforce around AI-native skills, aiming to enhance its capabilities in AI development, data engineering, and cloud-based systems.
Are the layoffs permanent?
Some layoffs are expected to be permanent, but GM is still hiring for new roles, suggesting a strategic shift rather than a simple headcount reduction.
What kind of AI skills is GM seeking?
GM is seeking expertise in AI-native development, data engineering, model training, prompt engineering, and AI workflows, focusing on building AI systems from the ground up.
How does this reflect industry trends?
This move indicates a broader industry trend where large companies are rebuilding their tech teams around AI capabilities to stay competitive in autonomous vehicles, automation, and digital transformation.
