GM lays off 600 IT employees to hire AI experts

General Motors (GM) has recently made a significant strategic decision by laying off more than 10% of its IT staff, approximately 600 employees. This move aims to make way for artificial intelligence (AI) experts, reflecting a shift in priority towards skills better suited to the future challenges of the automotive industry.

In a statement to TechCrunch, GM confirmed these layoffs, initially reported by Bloomberg News, emphasizing their intention to transform their IT organization to better prepare for the future. Although these job cuts may seem drastic, they do not represent a permanent reduction in workforce. In fact, GM continues to actively recruit for roles requiring specific AI skills.

The new skills sought by GM include AI-native development, data engineering and analysis, as well as cloud-based engineering. The company aims to attract talent capable of designing AI systems, training models, and developing pipelines, rather than merely using AI as a simple productivity tool.

A Strategic Shift Towards AI

For the past 18 months, GM has undergone several waves of layoffs across various departments to focus its resources on priority initiatives, particularly AI. In August 2024, the company had already reduced its workforce by 1,000 employees in the software sector.

The arrival of Sterling Anderson, co-founder of the autonomous truck startup Aurora, in May 2025, marked a turning point in GM's strategy. As product director, Anderson has undertaken to consolidate the company's technology activities. This reorganization led to the departure of three senior leaders from the software team last November: Baris Cetinok, Dave Richardson, and Barak Turovsky.

To fill these departures, GM has recruited new talent specialized in AI. Behrad Toghi, a former Apple employee, was hired in October as head of AI, while Rashed Haq, a former Cruise executive, joined GM as vice president of autonomous vehicles.

A Vision for the Future

GM's restructuring illustrates how the adoption of AI is profoundly transforming businesses. Rather than simply integrating AI tools into existing teams, GM is choosing to rebuild its workforce to meet the growing needs of the industry. The specific skills being sought, such as agent development and model engineering, clearly indicate the direction in which demand from large companies is evolving.