DETROIT — The rapid expansion of artificial intelligence (AI) is becoming a critical factor for America’s largest automakers, particularly as it leads to significant job cuts among white-collar workers. The “Detroit Three” — General Motors, Ford, and Stellantis — have collectively eliminated more than 20,000 salaried positions in the U.S., representing a 19% reduction from their recent employment peaks this decade.
The reasons behind these job declines are multifaceted, usually stemming from evolving technological changes in the automotive sector. The industry is increasingly focused on software-defined vehicles, autonomy, electrification, and the latest advancements in AI. Ford CEO Jim Farley underscored this trend in July, suggesting that “AI is going to replace literally half of all white-collar workers in the U.S.” He cautioned that many will be left behind as the workforce adapts to a new technological landscape.
Leading the job reduction efforts, General Motors has cut its U.S. salaried workforce by approximately 11,000 since 2022, following a surge that saw employment rise from 48,000 in 2020 to 58,000 in 2022. Meanwhile, Ford, which scaled back by around 5,300 employees, now maintains about 30,700 white-collar workers, while Stellantis has seen its numbers decline from 15,000 to around 11,000.
In terms of overall statistics, combined white-collar employment among the three automakers peaked at about 102,000 in 2022, a number that has since fallen by 13%, down to 88,700 as of the end of last year.
The most recent cuts at GM involved between 500 and 600 salaried employees primarily within its IT department, attributed in parts to shifting workforce demands in light of AI integration. Employees have reported an internal push for embracing AI tools to enhance productivity in daily operations.
Gad Levanon, chief economist at the Burning Glass Institute, indicates that clerical and repetitive office jobs are particularly at risk from AI automation. Tasks in finance and IT, including coding, are expected to see significant job losses. However, he also noted that growth is likely in areas directly related to emerging technologies like autonomous vehicles and cybersecurity.
This trend at GM is consistent with broader evaluations of workforce effectiveness under CEO Mary Barra, who has pointed out that not all employees who contributed to the company’s progress to date will be necessary as it evolves.
While Ford, GM, and Stellantis have been trimming their white-collar headcounts, the same does not hold true across the entire automotive industry. The U.S. Bureau of Labor Statistics reports a minimal drop of just 0.2% in motor vehicle manufacturing jobs overall, suggesting a more complex employment landscape. Notably, Toyota has reported a surge in white-collar employment, rising 31% from 2020 to 2025.
Despite the layoffs, the three automakers maintain a robust hiring agenda for certain roles. Ford is reportedly planning to add more than 2,000 jobs in North America, and there are currently over 2,000 open positions across the Detroit automakers, with nearly 400 of those specifically targeting AI expertise.
Lenny LaRocca of KPMG emphasized the need for automakers to approach their AI strategies with care, advocating for efficiency over mere headcount reduction. Gregory Emerson from Boston Consulting Group echoed this sentiment, predicting that while 10% to 15% of U.S. jobs could be lost to AI over the next several years, more significantly, 50% to 55% could be reshaped as the integration of AI continues to proliferate.
As the industry navigates these challenges, automakers must consider the balance between embracing new technologies and retaining critical talent to sustain productivity and innovation.
