GM lays off 600 IT workers to hire AI-skilled replacements
Original: GM just laid off hundreds of IT workers to hire those with stronger AI skills
Why This Matters
Signals how enterprise AI adoption requires rebuilding workforces, not just adding tools
General Motors laid off over 10% of its IT department, approximately 600 salaried employees, in a strategic move to replace workers with AI-focused skills. The company is actively hiring for AI-native development, data engineering, cloud engineering, and model development roles.
GM confirmed layoffs affecting more than 600 IT workers, representing over 10% of the department, as part of what the company calls a transformation to "better position the company for the future." The cuts are not permanent headcount reductions but rather a skills swap, with GM actively hiring for AI-native development, data engineering, analytics, cloud-based engineering, agent and model development, and prompt engineering roles. The restructuring follows significant leadership changes, including hiring Sterling Anderson as chief product officer in May 2025 and the departure of three software executives. GM has also brought on AI-focused talent including Behrad Toghi from Apple as AI lead and Rashed Haq as VP of autonomous vehicles. This follows previous layoffs of 1,000 software workers in August 2024.