General Motors has made a big shift in its tech workforce. The company laid off around 600 IT employees, which is more than 10% of its IT staff. The reason? GM is shifting its focus towards artificial intelligence and high-tech innovation. Instead of keeping all its old roles, GM is replacing some with new positions that require AI skills.

Why Did GM Make These Changes?

GM says the layoffs are part of a plan to prepare for the future. They want to build an IT team that’s more aligned with AI development, data engineering, cloud computing, and machine learning. The company is not reducing overall headcount, but rather changing the skills they look for.

A source close to GM told us that the company is still hiring. They want experts who can design AI systems, train models, and develop pipelines from scratch. In other words, GM is looking for people who know how to create AI tools, not just use them to improve existing work.

Shift Toward AI-First Technology

Over the past year and a half, GM has been restructuring its software teams. In August 2024, they cut about 1,000 software workers. The goal was to focus on high-priority projects, especially AI-driven initiatives. These efforts include autonomous vehicles and smart mobility solutions.

GM has also brought in new leadership with strong AI backgrounds. They hired Behrad Toghi from Apple as AI lead and Rashed Haq from Cruise, a self-driving car company GM acquired. These hires show GM’s commitment to building a workforce that can develop AI from the ground up, including designing systems, training models, and engineering pipelines.

This move reflects a broader trend in the industry. Big companies are not just adding AI tools on top of existing teams. They are rebuilding their workforce to be more AI-native. GM’s focus on agent development, model engineering, and AI workflows points to where enterprise demand is heading in the near future.

Overall, GM’s restructuring signals its intention to lead in automotive AI innovation. The company is actively investing in new talent and skills to stay competitive. This approach may influence other enterprises to rethink their tech strategies and workforce planning around AI skills in the coming years.

Inspired by

• https://techcrunch.com/2026/05/11/gm-just-laid-off-hundreds-of-it-workers-to-hire-those-with-stronger-ai-skills/