General Motors has laid off approximately 600 IT employees to realign its workforce with a focus on artificial intelligence capabilities.
General Motors (GM) has recently laid off around 600 employees from its Information Technology (IT) department, representing about 10% of the workforce in that division. This strategic move is part of the company’s initiative to transition towards a more AI-focused operational model.
According to a report from TechCrunch, the layoffs are intended to facilitate a skill swap within the organization, as GM seeks to replace employees whose expertise no longer aligns with the company’s evolving technological needs. In a statement, GM emphasized its commitment to transforming its IT organization to better prepare for future challenges.
A source familiar with the situation indicated that while GM is reducing its workforce in certain areas, the company is simultaneously hiring for new roles that require different skill sets. The focus is now on attracting talent with expertise in AI-native development, data engineering and analytics, cloud-based engineering, agent and model development, prompt engineering, and the creation of new AI workflows.
GM is particularly interested in candidates who can build AI systems from the ground up, rather than those who merely use AI tools for productivity. This shift reflects a broader trend within the automotive industry as companies increasingly integrate advanced technologies into their operations.
This latest round of layoffs is not an isolated incident; GM has undergone several workforce reductions over the past 18 months across various departments. Notably, in August 2024, the company laid off about 1,000 software workers as part of its ongoing restructuring efforts.
Since the appointment of Sterling Anderson as chief product officer in May 2025, GM has seen significant changes within its software workforce. Last November, three senior executives departed from the software team as Anderson initiated a consolidation of GM’s diverse technology operations into a unified organization. Following these departures, GM has made several AI-focused hires, including Behrad Toghi, who previously served as the AI lead at Apple, and Rashed Haq, who was the AI head at self-driving vehicle company Cruise, now serving as vice president of autonomous vehicles.
Anderson has acknowledged the challenges facing the auto industry, citing factors such as tariffs, the influx of low-cost Chinese vehicles, and the financial pressures consumers are experiencing, which make purchasing vehicles more difficult. He also noted that the rapid advancement of artificial intelligence, particularly the rise of coding agents, is influencing workforce dynamics.
The recent layoffs at GM are part of a broader trend affecting various sectors, with reports indicating that over 37,000 employees were laid off in the first ten days of May 2026 alone. Companies across technology, finance, aviation, media, and cybersecurity have announced significant workforce reductions as they adapt to restructuring and the increasing adoption of artificial intelligence technologies.
This ongoing transformation within GM highlights the company’s efforts to align its workforce with the demands of the future, as it seeks to remain competitive in an ever-evolving market.
For further details, refer to TechCrunch.