GM cuts 600 IT workers to hire AI specialists in strategic workforce swap

General Motors has laid off more than 10% of its information technology department, affecting approximately 600 salaried employees, in a deliberate skills swap designed to clear out legacy roles and make room for workers with artificial intelligence expertise. The automaker confirmed the layoffs to Bitcoin World after they were first reported by Bloomberg News.

A deliberate restructuring, not just cost-cutting

In an emailed statement, GM framed the cuts as part of a broader transformation of its IT organization to better position the company for the future. Unlike typical reductions driven by cost savings, these layoffs are not entirely permanent headcount reductions. A person familiar with the moves told Bitcoin World that GM is actively hiring for new roles within the same IT department, but for fundamentally different skill sets.

The most sought-after capabilities include AI-native development, data engineering and analytics, cloud-based engineering, and agent and model development, prompt engineering, and new AI workflows. In practical terms, GM is looking for people who can build AI systems from the ground up — designing architectures, training models, and engineering pipelines — rather than simply using AI as a productivity tool.

Broader workforce shifts under new leadership

This is not the first time GM has trimmed its white-collar workforce in recent months. In August 2024, the company cut about 1,000 software workers as part of a broader push to concentrate resources on high-priority initiatives, including AI. The software organization has undergone significant change since Sterling Anderson — co-founder of autonomous trucking startup Aurora and a veteran of the autonomous vehicle industry — was hired as chief product officer in May 2025.

Last November, three top executives departed GM’s software team as Anderson moved to consolidate the company’s disparate technology businesses into a single organization: Baris Cetinok, senior vice president of software and services product management; Dave Richardson, senior vice president of software and services engineering; and Barak Turovsky, who spent just nine months as GM’s chief AI officer after joining from Cisco.

GM has since filled those gaps with AI-focused hires. It brought on Behrad Toghi, previously at Apple, as AI lead in October. The company also hired Rashed Haq as vice president of autonomous vehicles; Haq spent five years at Cruise — the self-driving vehicle company GM acquired and later shuttered — as its head of AI and robotics.

What this signals for enterprise AI adoption

For the broader industry, GM’s restructuring offers a clear signal of what enterprise AI adoption looks like in practice. It is not simply about adding AI tools on top of existing teams, but deliberately rebuilding the workforce from the ground up. The specific capabilities GM is hiring for — agent development, model engineering, AI-native workflows — point directly to where large-enterprise demand is heading.

This shift has implications for other legacy industries undergoing digital transformation. As companies like GM prioritize AI-native talent, workers with traditional IT skills may face increasing pressure to reskill, while the market for AI engineers and data scientists is likely to remain competitive.

Conclusion

GM’s decision to lay off 600 IT workers while simultaneously hiring for AI-focused roles represents a strategic workforce realignment rather than a simple reduction. The moves underscore the automotive giant’s commitment to embedding AI deeply into its operations, and offer a case study in how large enterprises are restructuring to compete in an AI-driven economy. For the industry, it is a reminder that the transition to AI-native operations will involve difficult personnel decisions — and that the demand for specialized AI talent shows no signs of slowing.

FAQs

Q1: How many workers did GM lay off?
GM laid off about 600 salaried employees, representing more than 10% of its IT department.

Q2: Is GM reducing its overall workforce?
Not entirely. The company is still hiring for new IT roles, but with a focus on AI-native skills rather than legacy IT expertise.

Q3: Why is GM making these changes?
GM is restructuring its IT organization to prioritize AI development, data engineering, cloud-based engineering, and agent/model development, as part of a broader push to embed AI into its core operations.