General Motors cuts IT jobs by 10% as it shifts focus to AI talent

General Motors, the automaker, has reduced its IT headcount by over 10%, affecting about 600 employees, as it revamps its skills and hiring priorities. According to a TechCrunch report, GM is replacing jobs with employees who have stronger backgrounds in artificial intelligence (AI) and related technologies.

The company highlight that it is preparing for the future as AI reshapes the workforce. In an email statement, the company said, “GM is transforming its Information Technology organisation to better position the company for the future.”

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GM ramps up AI-focused hiring

The report further highlighted that GM is hiring new people for its IT department with new roles and skills. It is highlighted that the company may plan to hire  AI-native development, data engineering and analytics, cloud-based engineering, roles for developing AI agents and models, and prompt engineers. In short, GM is hiring people who can create and develop AI technology, rather than just use AI tools in their daily work.

GM’s software division has seen major restructuring since Sterling Anderson joined as chief product officer in May 2025. Anderson has been working to merge GM’s technology units into a single organisation. In the move, several senior software executives, including Baris Cetinok, Dave Richardson, and Barak Turovsky, GM’s former chief AI officer, exited the company. In addition, it has started hiring more AI-focused talent to strengthen its technology efforts.

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Recently, GM hired Behrad Toghi as AI lead. He previously served on major projects at Apple. It also appointed Rashed Haq as vice president of autonomous vehicles. 

Tech layoffs increase in 2026

Looking at the recent layoff trends, the IT sector is majorly impacted by AI-based restructuring. Recently, IT and tech giants, including Meta, Amazon, Oracle, Snap, and others, have laid off thousands of employees in just the first four months of 2026. 

Cognizant is also reported to conduct a layoff drive that may impact over 15,000 employees globally. This showcases how companies are rapidly revamping their workforce as AI goes mainstream, with businesses increasingly prioritising employees who possess advanced AI, automation, and data-focused skills.