General Motors has laid off more than 600 salaried employees from its IT department as the automaker restructures its workforce around artificial intelligence and cloud-based engineering capabilities.
The layoffs affect more than 10% of the company’s IT division and were confirmed by GM to TechCrunch after initially being reported by Bloomberg News.
In a statement, the automaker said the changes are part of a broader effort to prepare the company for future technology needs.
“GM is transforming its Information Technology organization to better position the company for the future,” the company said.
According to a person familiar with the restructuring, the cuts are not solely aimed at reducing overall headcount. GM is continuing to recruit employees for technology positions, but with a different set of technical skills focused heavily on AI development.
The company is seeking workers with expertise in AI-native software development, data engineering, analytics, cloud-based engineering, prompt engineering, agent and model development, and AI-focused workflows.
The restructuring reflects a shift toward building AI systems directly into the company’s internal software infrastructure rather than using AI only as a productivity layer on top of existing operations.
GM Continues Software Reorganization
The latest layoffs follow a series of workforce reductions across GM’s software and technology divisions over the last 18 months.
In August 2024, the automaker cut around 1,000 software-related jobs.
GM’s software organization has undergone significant restructuring since Sterling Anderson joined the company in May 2025.
Anderson previously co-founded autonomous trucking company Aurora and worked extensively in the autonomous vehicle sector.
Since his arrival, GM has consolidated several technology operations into a more centralized structure.
Last November, three senior executives left the company’s software division during that reorganization effort:
- Baris Cetinok
- Dave Richardson
- Barak Turovsky
Turovsky previously worked as a vice president at Cisco before joining GM.
Company Adds New AI Leadership
GM has continued hiring AI-focused executives and engineers as part of the restructuring.
The company hired Behrad Toghi in October after his previous work at Apple.
GM also appointed Rashed Haq, who previously spent five years at self-driving vehicle company Cruise as head of AI and robotics.
Cruise had been acquired by GM before later being shut down.
The company’s hiring priorities indicate increasing demand for employees capable of designing AI systems, training models, building infrastructure pipelines, and developing agent-based software systems.
The restructuring also reflects broader changes taking place across large enterprises as companies shift investment toward AI-focused engineering and software development.
Featured image credits: Flickr
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