General Motors (GM) has laid off approximately 600 salaried information technology (IT) workers, eliminating more than 10 percent of its IT department as it rebuilds its technology organisation around artificial intelligence (AI) and advanced software engineering capabilities.
The restructuring, confirmed by the company and reported by TechCrunch, is not primarily a cost-reduction exercise. Industry observers describe it as a deliberate skills swap, replacing conventional IT roles with employees who hold stronger expertise in AI-native development, data engineering, cloud infrastructure, analytics, prompt engineering and agent-based AI systems.
GM said it is transforming its technology organisation to better prepare for the future, a statement that reflects a broader shift underway across corporate America as companies redesign teams around AI capabilities rather than traditional software functions.
The automaker is now prioritising engineers capable of building AI systems and workflows from the ground up, rather than workers who use AI tools to improve productivity within existing processes. The distinction matters: GM wants architects of AI, not just users of it.
The latest cuts extend a wider restructuring drive inside GM. In 2024, the company laid off roughly 1,000 software employees as it redirected resources toward high-priority AI and technology initiatives. Since then, the automaker has brought in several executives with AI and autonomous vehicle backgrounds to accelerate the transition.
Recent hires include Behrad Toghi, formerly of Apple, who joined as AI lead, and Rashed Haq, previously involved with the now-closed self-driving company Cruise, who was appointed vice president overseeing autonomous vehicle initiatives.
The strategy reflects how deeply AI is reshaping the automotive sector. Modern vehicles are increasingly software-driven, with manufacturers investing heavily in autonomous systems, intelligent driver assistants, predictive maintenance and AI-powered manufacturing operations.
GM’s approach mirrors a growing pattern across corporate and technology sectors. Companies including Cloudflare, Coinbase and Airbnb have recently linked workforce reductions or restructuring directly to rising AI adoption and automation priorities.
Research published on arXiv found that candidates with AI-related expertise significantly improved their chances of receiving interview invitations across multiple industries, reinforcing how rapidly AI skills are becoming a central hiring advantage in the modern labour market.
For GM, the restructuring signals something larger than a workforce adjustment. It points to how major corporations are fundamentally redesigning themselves around artificial intelligence as they race to stay competitive in an economy where AI capabilities are quickly becoming essential to strategy, product development and long-term growth.
