General Motors has laid off approximately 600 salaried employees from its information technology division — more than 10% of the department — as part of a deliberate strategy to replace existing workers with those skilled in artificial intelligence, data engineering, and cloud-based development. The automaker confirmed the cuts to TechCrunch, following an initial report by Bloomberg News.
A skills swap, not just a reduction
GM framed the layoffs as a forward-looking reorganization. In an emailed statement, the company said it is “transforming its Information Technology organization to better position the company for the future.” A person familiar with the move told TechCrunch that the cuts are not purely permanent headcount reductions. The company is actively hiring for roles requiring AI-native development, data engineering and analytics, cloud-based engineering, agent and model development, prompt engineering, and new AI workflows.
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In practical terms, GM is seeking engineers who can build AI systems from the ground up — designing architectures, training models, and constructing pipelines — rather than simply using AI as a productivity tool. This marks a clear shift from incremental upskilling to structural workforce redesign.
Broader restructuring across the company
This is not an isolated event. Over the past 18 months, GM has cut white-collar roles across several departments as it redirects resources toward high-priority initiatives, including AI. In August 2024, the company eliminated about 1,000 software positions. The software division has undergone significant change since Sterling Anderson — co-founder of autonomous trucking startup Aurora and a veteran of the autonomous vehicle industry — joined as chief product officer in May 2025.
Last November, three top software executives departed: Baris Cetinok, senior vice president of software and services product management; Dave Richardson, senior vice president of software and services engineering; and Barak Turovsky, who served just nine months as GM’s chief AI officer. GM has since filled those gaps with new AI-focused hires, including Behrad Toghi, previously at Apple, who joined in October as AI lead, and Rashed Haq, former head of AI and robotics at Cruise, who now serves as vice president of autonomous vehicles.
What this signals for enterprise AI adoption
GM’s restructuring offers a real-world case study of how large enterprises are integrating AI — not by layering tools onto existing teams, but by deliberately rebuilding the workforce. The specific capabilities GM is hiring for — agent development, model engineering, AI-native workflows — point directly to where enterprise demand is heading. For other companies, this may serve as a template: AI adoption at scale often requires not just new hires, but a willingness to let go of legacy roles.
Conclusion
GM’s decision to cut 600 IT workers while actively recruiting AI specialists reflects a broader trend in corporate America: the transition from AI experimentation to structural integration. The company is betting that a workforce built around AI-native skills will be essential to compete in an increasingly software-defined automotive industry. For readers, this is a reminder that enterprise AI adoption is less about adding tools and more about reshaping the teams that build them.
FAQs
Q1: How many workers did GM lay off in its IT department?
GM laid off about 600 salaried employees, representing more than 10% of its IT workforce.
Q2: Is GM reducing its overall headcount?
No. The company is still hiring for roles requiring AI, data engineering, and cloud skills. The layoffs are a skills swap, not a net reduction.
Q3: Why is GM making these changes?
GM is restructuring to focus on AI-native development, agent and model engineering, and cloud-based engineering as part of a broader push to compete in software-defined vehicles and autonomous driving.
