General Motors has laid off more than 10% of its information technology workforce — approximately 600 salaried employees — in a strategic move to replace legacy skills with AI-focused expertise. The automaker confirmed the cuts to TechCrunch, framing them as part of a broader transformation of its IT organization.
A skills swap, not just a reduction
GM described the layoffs as a deliberate workforce restructuring rather than a permanent headcount reduction. According to a person familiar with the decision, the company is actively hiring for new roles within the IT department — but with a different skill set. The most sought-after capabilities include AI-native development, data engineering, cloud-based engineering, agent and model development, and prompt engineering. In essence, GM is looking for people who can build AI systems from the ground up, not simply use existing AI tools as productivity aids.
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The layoffs were first reported by Bloomberg News. In an emailed statement, GM said: “GM is transforming its Information Technology organization to better position the company for the future.” The company did not provide specific details on the number of affected workers or the exact timeline.
Broader restructuring across white-collar roles
This is not an isolated event. Over the past 18 months, GM has cut white-collar employees across several departments as it redirects resources toward high-priority initiatives, particularly artificial intelligence. In August 2024, the company laid off about 1,000 software workers. Those cuts followed the hiring of Sterling Anderson as chief product officer in May 2025. Anderson, co-founder of autonomous trucking startup Aurora, has pushed to consolidate GM’s disparate technology businesses into a single organization.
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In November 2024, three top executives left GM’s software team amid this consolidation: Baris Cetinok, senior vice president of software and services product management; Dave Richardson, senior vice president of software and services engineering; and Barak Turovsky, who served as chief AI officer for just nine months.
New AI leadership and hires
GM has since moved to fill the gaps with AI-focused talent. In October 2024, the company hired Behrad Toghi, a former Apple engineer, as AI lead. It also brought on Rashed Haq as vice president of autonomous vehicles. Haq spent five years at Cruise — the self-driving vehicle company GM acquired and later shuttered — as its head of AI and robotics.
What this means for enterprise AI adoption
GM’s restructuring offers a real-world signal of how large enterprises are approaching AI adoption. Rather than layering AI tools on top of existing teams, the automaker is rebuilding its workforce from the ground up. The specific capabilities it is hiring for — agent development, model engineering, and AI-native workflows — point directly to where enterprise demand is heading. For the broader automotive and technology industries, this shift underscores a growing recognition that AI transformation requires not just new tools, but fundamentally different talent.
Conclusion
GM’s decision to cut 600 IT workers while actively hiring AI specialists reflects a deliberate strategy to reposition its workforce for an AI-driven future. The move is part of a broader pattern of restructuring across the company’s software and technology divisions, driven by new leadership and a focus on high-priority initiatives. For observers of enterprise AI adoption, GM’s approach offers a clear case study in workforce transformation.
FAQs
Q1: How many workers did GM lay off in this round?
Approximately 600 salaried employees, representing more than 10% of GM’s IT department.
Q2: Is GM reducing its overall headcount?
No. The company is still hiring for IT roles, but is seeking candidates with AI-specific skills such as agent development, model engineering, and cloud-based engineering.
Q3: Why is GM making these changes?
GM is restructuring its IT organization to better position itself for an AI-driven future. The company has been cutting white-collar roles across several departments over the past 18 months to focus resources on high-priority initiatives, including artificial intelligence.
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