General Motors laid off over 600 IT employees as it restructures around AI-focused operations
The company is now prioritising skills such as AI development, cloud engineering and prompt engineering
GM joins a growing list of major firms using AI-driven restructuring to reshape their workforce
GM Cuts Over 600 IT Jobs as AI Hiring Takes Priority
The company framed these layoffs as a means to prepare for the future
GM Cuts Over 600 IT Jobs as AI Hiring Takes Priority Bill Pugliano/Getty Images
Summary
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General Motors (GM) has laid off more than 10% of its IT workforce, a move which will see over 600 employees lose their jobs. According to a report by TechCrunch, this comes as the company pivots towards a more AI-focused workforce.
The company framed these layoffs as a means to prepare for the future. An emailed statement from the automaker said “GM is transforming its Information Technology organisation to better position the company for the future.”
Focus on AI Based Hiring
The report stated that the company is still hiring people for roles in its IT department but the skills they are looking for are different. The most sought-after capabilities are AI-native development, data engineering and analytics, cloud-based engineering, and agent and model development, prompt engineering, and new AI workflows.
The hiring focus suggests that GM is looking for employees who not only use AI for their daily work but also develop AI technology.
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GM has undergone significant structural changes since Sterling Anderson joined as the company’s Chief Product Officer in May 2025. Several senior software executives such as Baris Cetinok, Dave Richardson, and Barak Turovsky exited the company.
Signifying the company’s new direction GM hired Behrad Toghi, who previously worked at Apple, as AI lead. It has also appointed Rasheed Haq as vice president of autonomous vehicles.
Tech Layoffs
According to a report by The Economic Times over 92,000 tech workers have lost their jobs this year. The companies cutting jobs include tech giants Meta who cut 8000 jobs and Amazon who laid off around 30,000 people.
Just last week Cloudflare, a major tech company, announced that it was laying off over 1,000 employees amid a shift to an AI-first model.
This highlights how Artificial Intelligence is upending the tech sector with employees possessing AI skills in high demand as businesses look to modernise their workforce.
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