GM Cuts 600 IT Jobs in Shift Toward AI-Native Workforce

General Motors has laid off more than 600 salaried employees — over 10% of its IT workforce — as part of what appears to be a deliberate shift toward AI-focused skills and capabilities. The move, first reported by Bloomberg and confirmed by GM to TechCrunch, reflects a broader restructuring effort aimed at modernizing the automaker’s technology organization.

In a statement, GM said it is "transforming its Information Technology organization to better position the company for the future," though it did not disclose detailed specifics about the cuts. According to a person familiar with the matter, the layoffs are not purely about reducing headcount. Instead, they represent a strategic skills reset.

A Shift Toward AI-Native Capabilities

GM is actively hiring for new IT roles, but with a markedly different emphasis. The company is prioritizing expertise in AI-native development, data engineering and analytics, cloud-based engineering, agent and model development, prompt engineering, and new AI-driven workflows.

This distinction is significant. Rather than seeking employees who merely use AI tools to boost productivity, GM is targeting engineers capable of building AI systems from the ground up — designing model architectures, training and fine-tuning systems, constructing data pipelines, and integrating AI deeply into enterprise operations.

The hiring focus suggests GM aims to embed artificial intelligence at the core of its software and operational infrastructure, rather than treating it as an add-on capability.

Broader Software Reorganization

The layoffs are part of a longer-term restructuring of GM’s software and technology divisions. Over the past 18 months, the company has reduced white-collar staff across multiple departments while reallocating resources to high-priority initiatives, particularly in AI and software-defined vehicle platforms.

In August 2024, GM cut roughly 1,000 software roles. Leadership changes have also reshaped the division. Sterling Anderson, co-founder of autonomous trucking startup Aurora, joined GM in May 2025 as chief product officer, signaling a renewed push into advanced software and autonomy initiatives. Several top software executives departed later that year, further underscoring the internal reset.

An Industry-Wide Skills Realignment

GM’s workforce overhaul reflects a broader pattern emerging across industries: established enterprises are reevaluating legacy IT structures in favor of AI-centric architectures. Rather than incrementally retraining existing teams, some companies are opting for more abrupt transitions, replacing traditional IT roles with specialized AI engineering talent.

For automakers, the stakes are particularly high. As vehicles become increasingly software-defined and reliant on advanced driver assistance, connectivity, and data services, AI capabilities are becoming foundational rather than experimental.

GM’s latest cuts illustrate a difficult reality of the AI transition: modernization often involves not just adopting new tools, but reshaping entire organizational skill bases. The company is betting that building AI-native infrastructure today will better position it for the next phase of automotive and enterprise technology competition.