General Motors has dismissed over 10% of its IT workforce, approximately 600 salaried workers, to recruit employees with AI-focused skills.
Strategic Workforce Realignment
GM confirmed the layoffs, initially reported by Bloomberg News. The company described the move as a strategic transformation of its IT department aimed at future-proofing its operations. Specific details about the transformation were not disclosed, but GM emphasized the importance of aligning with future technological demands.
Skills in Demand
A source familiar with the layoffs indicated that while some positions were cut, GM is actively hiring for roles requiring AI-native development, data engineering, and cloud-based skills. The focus is on individuals who can design AI systems, train models, and engineer data pipelines, rather than simply using AI as a tool.
Ongoing Restructuring Efforts
In the past 18 months, GM has reduced its white-collar workforce across multiple departments, prioritizing AI initiatives. In August 2024, GM laid off 1,000 software workers. These shifts gained momentum under Sterling Anderson, the company's chief product officer since May 2025. Anderson, co-founder of Aurora, has driven consolidation efforts within GM’s technology divisions.
New Leadership in AI
GM has recruited new leadership to bolster its AI capabilities. Behrad Toghi, previously at Apple, was appointed as AI lead in October. Additionally, Rashed Haq, with a background at Cruise as head of AI and robotics, joined GM as the vice president of autonomous vehicles.
GM's restructuring reflects a broader industry trend towards embedding AI at the core of enterprise operations. The company's recruitment focus on agent development, model engineering, and AI-native workflows highlights the direction large enterprises are heading in adopting AI.
Source: https://techcrunch.com/2026/05/11/gm-just-laid-off-hundreds-of-it-workers-to-hire-those-with-stronger-ai-skills/
