TL;DR
General Motors laid off approximately 600 IT employees, about 10% of its IT workforce, to make room for hires with specialized AI skills. The move reflects a strategic shift toward AI-native development and advanced data engineering. The company is still hiring for new roles focused on AI and automation.
General Motors has laid off more than 10% of its IT department, approximately 600 employees, in a strategic move to shift its workforce toward AI-centric skills, according to confirmed reports from TechCrunch and Bloomberg News.
GM confirmed to TechCrunch that it conducted layoffs affecting its IT staff, framing the move as a step to better position the company for the future. The layoffs were part of a broader restructuring aimed at replacing roles with positions requiring expertise in AI-native development, data engineering, cloud-based engineering, and AI workflow design.
Sources familiar with the matter indicated that the layoffs are not permanent reductions but part of a skills realignment. The company is actively hiring for new roles that focus on building AI systems from the ground up, including training models, designing pipelines, and developing AI-driven applications.
Over the past 18 months, GM has also reduced its software workforce, including the layoffs of about 1,000 software employees in August 2024. The company has been consolidating its AI and software teams, especially after hiring notable AI talent such as Behrad Toghi, formerly of Apple, and Rashed Haq from Cruise, GM’s autonomous vehicle subsidiary.
Why It Matters
This move signifies a broader industry trend where large enterprises are not just integrating AI tools but actively restructuring their workforce to develop AI capabilities in-house. GM’s focus on AI-native development highlights the increasing importance of specialized skills like agent development, model engineering, and prompt engineering, which are expected to be in high demand across industries.
For the automotive and tech sectors, GM’s shift underscores a strategic emphasis on AI-driven innovation, potentially influencing hiring standards and technological investments across the sector. It also signals the importance of advanced AI skills for future competitiveness and operational efficiency.
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Background
GM’s AI and software workforce has undergone significant changes since May 2025, when Sterling Anderson was hired as chief product officer. The company has been consolidating its tech teams, moving away from disparate units towards a unified AI and software organization. This restructuring has included leadership changes and targeted hiring of AI specialists, reflecting a deliberate push to embed AI deeply into GM’s product development and operations.
The layoffs follow a pattern of recent reductions in GM’s software workforce and a strategic focus on AI, which has been emphasized in executive leadership discussions. The company’s investments in autonomous vehicles and AI-driven manufacturing processes further illustrate this shift.
“GM is transforming its Information Technology organization to better position the company for the future.”
— GM spokesperson
“The company is still hiring for roles that focus on AI-native development, data engineering, and AI workflows, emphasizing building AI systems from scratch.”
— A source familiar with GM’s hiring plans
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What Remains Unclear
It is not yet clear how long the layoffs will impact GM’s overall workforce or the full scope of the new AI-focused roles. Details about the specific criteria for layoffs and the timeline for hiring replacements are still emerging. Additionally, the long-term impact on GM’s technological capabilities remains to be seen.
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What’s Next
GM is expected to continue hiring for AI-centric roles, with a focus on building internal expertise in AI development, model training, and pipeline engineering. The company may also announce further restructuring or investments in AI infrastructure as part of its strategic plan to embed AI across its operations.
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Key Questions
Why did GM lay off so many IT workers?
GM laid off over 600 IT employees to shift its workforce toward AI-native skills, aiming to develop AI systems and workflows internally rather than relying solely on existing software teams.
Are the layoffs permanent?
Sources indicate that the layoffs are part of a skills realignment, and GM is actively hiring for new roles focused on AI development, suggesting the reductions may not be permanent but part of an ongoing restructuring.
What kinds of roles is GM hiring for now?
GM is seeking specialists in AI-native development, data engineering, cloud-based engineering, agent and model development, and prompt engineering to build AI systems from the ground up.
How does this reflect industry trends?
This move signals a broader shift among large enterprises toward rebuilding their workforce around AI capabilities, emphasizing the importance of specialized technical skills for future competitiveness.
