General Motors has recently made significant cuts within its Information Technology department, laying off over 600 salaried employees, which represents more than 10% of the workforce in that division. This move, first reported by Bloomberg News and later confirmed by GM to TechCrunch, is part of a broader strategy to align the company’s workforce with its future goals, particularly in the realm of artificial intelligence (AI).
In an official statement, GM emphasized that the layoffs are part of a transformation within its IT organization aimed at better preparing the company for future challenges. However, details surrounding the specifics of the restructuring remain sparse.
Despite the layoffs, sources indicate that GM is not completely reducing its headcount in IT. Instead, the automaker is still seeking fresh talent with expertise in areas critical to its evolving needs. The current hiring focus includes skills such as AI-native development, data engineering, analytics, and cloud-based engineering. The company is particularly interested in individuals who can construct AI systems from the ground up, actively engaging in model training, system design, and engineering rather than simply leveraging AI as a supplementary tool.
GM’s recent workforce changes fall within a context of broader adjustments made over the past 18 months, during which the automaker has streamlined its operations across various departments to concentrate on high-priority technological initiatives, especially those involving AI. Notably, in August 2024, the company laid off approximately 1,000 software employees as part of this ongoing realignment.
The restructuring of GM’s software workforce accelerated following the appointment of Sterling Anderson as chief product officer in May 2025. Anderson’s leadership has been marked by a significant transformation in how the company approaches its technology initiatives. Key departures from the software team occurred last November when three senior executives left as part of Anderson’s vision to consolidate GM’s various technology arms into a unified organization. These shifts included the exit of high-profile figures, such as the chief AI officer who left after a brief nine-month tenure.
In response to the changing landscape, GM has also made key new hires focusing on AI. Behrad Toghi, a former employee at Apple, was brought on board in October as the AI lead, while Rashed Haq was appointed vice president of autonomous vehicles, having previously served at Cruise, GM’s self-driving vehicle subsidiary.
The restructuring initiative at GM serves as a telling indication of how enterprise AI adoption is manifesting within large organizations. Rather than merely incorporating AI tools into established teams, GM is selectively rebuilding its workforce to ensure a robust, future-ready skill set that aligns with the evolving demands of the industry. This focus on specific capabilities such as agent development and AI-native workflows underscores the direction large enterprises are heading in terms of technological advancement and innovation.
