GM’s Bold Move: Laying Off IT Workers to Boost AI Capabilities

General Motors (GM) is making a significant move by laying off more than 10% of its Information Technology (IT) department, approximately 600 salaried employees, to realign with its AI-focused future. This strategic decision was confirmed by GM and first reported by Bloomberg News.

According to GM’s statement, the layoffs are part of a broader initiative to better position the company for the digital transformation ahead. 'GM is transforming its Information Technology organization to better position the company for the future,' said the automaker in an emailed response to TechCrunch.

The laid-off employees will not all be gone permanently. A source familiar with the situation told TechCrunch that GM is still actively hiring for new roles, but looking for candidates with specific AI-related skills. The most sought-after capabilities include AI-native development, data engineering and analytics, cloud-based engineering, agent and model development, prompt engineering, and new AI workflows.

This transition reflects a significant shift from traditional IT practices to an AI-centric approach. GM is not just looking for people who can use AI as a productivity tool; it's seeking individuals who can design and engineer systems that leverage artificial intelligence from the ground up. This includes building models, training algorithms, and setting up data pipelines.

The restructuring of GM’s IT department isn't an isolated incident but part of a larger trend within the company. Over the past 18 months, GM has been cutting white-collar employees across various departments as it focuses on high-priority initiatives, including AI research and development. For instance, in August 2024, the company cut about 1,000 software workers.

Key leadership changes further underscore this transition. In May 2025, GM hired Sterling Anderson, co-founder of Aurora (an autonomous trucking startup), as chief product officer. Since then, top executives such as Baris Cetinok, Dave Richardson, and Barak Turovsky have left the company’s software team. Turovsky, who was GM's chief AI officer for just nine months, was replaced by Behrad Toghi from Apple, who now serves as GM’s AI lead.

GM is also bringing in new talent with a strong background in autonomous vehicles and AI. Rashed Haq, previously the head of AI and robotics at Cruise (acquired by GM), has joined GM as its vice president of autonomous vehicles.

This restructuring is more than just about cutting costs or reallocating resources; it's signaling a fundamental shift in how large enterprises like GM will adopt and integrate artificial intelligence. The specific roles GM is hiring for, such as agent development and model engineering, point to where the demand for these skills lies within the broader tech industry.

For companies navigating their own digital transformations, GM’s move serves as a blueprint for how to build an AI-focused workforce from scratch. It highlights that true enterprise AI adoption involves more than just adding tools on top of existing teams; it requires rebuilding the entire organization around new capabilities and skill sets.