GM just laid off hundreds of IT workers to hire those with stronger AI skills

General Motors has initiated a significant transformation within its IT department, resulting in the layoffs of approximately 600 salaried employees, which constitutes over 10% of the team. This move is part of a strategic effort to replace workers whose skills are no longer aligned with the company's future objectives, making way for individuals with specialized backgrounds in artificial intelligence. In a statement to TechCrunch, GM confirmed the layoffs, which were initially reported by Bloomberg News. The automaker described these changes as essential for positioning the company for future success, although specific details about the transition were not disclosed. GM emphasized that its Information Technology organization is being restructured to better meet the demands of an evolving industry landscape. It's important to note that this isn't a complete reduction in workforce; GM is still actively seeking new talent for its IT department, but with a focus on different skill sets. The company is particularly interested in candidates with expertise in AI development, data engineering and analytics, cloud engineering, and the creation of advanced AI workflows. In essence, GM is targeting professionals who can construct AI systems from the ground up—designing the frameworks, training models, and developing data pipelines—rather than merely utilizing AI as a tool for productivity. Over the past 18 months, GM has made similar layoffs across various departments, prioritizing initiatives that emphasize AI. For instance, in August 2024, the company reduced its software workforce by around 1,000 employees. This shift follows the hiring of Sterling Anderson as chief product officer in May 2025, who previously co-founded an autonomous trucking startup and has extensive experience in the autonomous vehicle sector. Additionally, last November saw the departure of three high-level executives from the software team as part of Anderson's efforts to unify GM's technology divisions. To fill the leadership void, GM has recruited AI specialists, including Behrad Toghi, who joined from Apple as the new AI lead, and Rashed Haq, who was appointed as vice president of autonomous vehicles after serving as head of AI and robotics at Cruise, a self-driving company previously owned by GM. This restructuring within GM serves as a clear indicator of the practical implications of enterprise AI adoption. It goes beyond simply integrating AI tools into existing roles; it involves a fundamental rebuild of the workforce to align with emerging industry demands for specialized AI skills.