General Motors Layoffs: US-Based Automaker Cuts 600 IT Roles in Major Shift Toward AI-Native Workforce
General Motors is laying off approximately 600 IT employees, over 10 per cent of the department, in a strategic 'skills swap'. The automaker is shifting focus from traditional IT roles to hiring specialists in AI-native development, data engineering, and cloud systems. This restructuring follows a 2024 cut of 1,000 software-related positions.
General Motors has laid off approximately 600 salaried employees from its Information Technology department, representing more than 10 per cent of the division’s workforce. The automaker confirmed the cuts are part of a deliberate "skills swap" aimed at replacing existing roles with talent specialised in artificial intelligence, data engineering, and cloud-based systems. While the move reduces current headcount, the company clarified that it is simultaneously hiring for new positions that prioritise AI-native development.
Restructuring for an 'AI-First' Future
In a statement addressing the layoffs, GM characterised the reorganiSation as a necessary step to modernise its technical infrastructure. "GM is transforming its Information Technology organization to better position the company for the future,” the company said. Starbucks Layoffs: Coffee Giant Eliminates 61 Corporate Positions in Seattle’s SoDo.
The restructuring marks a departure from using AI merely as a productivity tool. According to sources familiar with the matter, GM is now targeting professionals capable of building AI from the ground up. Key areas of recruitment include agent and model development, prompt engineering, data analytics, and the creation of new AI-integrated workflows.
A Pattern of Software Consolidation
These cuts follow a series of white-collar layoffs over the past 18 months as GM reallocates resources toward high-priority initiatives. In August 2024, the company eliminated approximately 1,000 software-related roles. The strategy has intensified under Chief Product Officer Sterling Anderson, a veteran of the autonomous vehicle industry who joined GM in May 2025. Since his arrival, Anderson has moved to consolidate GM'S various technology businesses into a single, streamlined organisation. This push led to the high-profile departures of three top software executives last November, including former Chief AI Officer Barak Turovsky.
New Leadership and Specialised Talent
To fill the expertise gap, GM has actively recruited from major tech and robotics firms. In October, the company hired former Apple engineer Behrad Toghi as its AI lead. More recently, GM appointed Rashed Haq as Vice President of Autonomous Vehicles. Haq previously spent five years leading AI and robotics at Cruise, the self-driving unit that GM acquired and subsequently shuttered. Porsche Layoffs: German Automaker To Cut Over 500 Jobs and Shut Down 3 Subsidiaries.
Industry Implications of Layoffs
Analysts view GM's recent moves as a bellwether for how large enterprises are handling the transition to artificial intelligence. Rather than layering AI tools onto existing teams, the automaker is opting to rebuild its workforce to focus on model engineering and autonomous systems. The specific emphasis on AI-native workflows and pipeline engineering suggests that GM is pivoting its internal operations to support more complex, automated decision-making systems across its global manufacturing and software platforms.
(The above story first appeared on LatestLY on May 12, 2026 07:18 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
