The AI Pivot: Why GM Just Terminated 10% of Its IT Department

General Motors’ recent layoff of 600 IT employees signals a bold transition to an AI-first corporate strategy, prioritizing emerging machine learning skills over traditional information technology.

Jeff Kowalsky/ Bloomberg/ Getty Images

GM verified to TechCrunch that it had executed layoffs, which were initially reported by Bloomberg News.

In an emailed statement, the manufacturer characterized the layoffs as a strategy to position itself for the future, without offering specifics. “GM is restructuring its Information Technology organization to enhance the company's future prospects,” the company stated. These layoffs do not constitute entirely permanent decreases in headcount. An individual acquainted with the layoffs informed TechCrunch that the company continues to recruit for positions inside its IT department, but for alternative skill sets. The most coveted competencies are AI-native development, data engineering and analytics, cloud engineering, as well as agent and model development, rapid engineering, and innovative AI processes. GM seeks individuals proficient in constructing AI from inception — encompassing system architecture, model training, and pipeline engineering — rather than merely employing AI as a productivity instrument.

General Motors has terminated white-collar employees across multiple departments in the last 18 months, as it reallocates resources towards high-priority initiatives, including artificial intelligence. In August 2024, the business terminated approximately 1,000 software employees. Since Sterling Anderson, co-founder of the autonomous trucking firm Aurora and an experienced professional in the autonomous vehicle sector, was appointed chief product officer in May 2025, the software staff has experienced substantial transformation. In November of last year, three senior executives departed from the company's software division as Anderson sought to unify GM's fragmented technology enterprises into a single entity: Baris Cetinok, Senior Vice President of Software and Services Product Management; Dave Richardson, Senior Vice President of Software and Services Engineering; and Barak Turovsky, a former Vice President at Cisco who held the position of GM's Chief AI Officer for only nine months.

General Motors has subsequently sought to address the deficiency by recruiting new personnel with a focus on artificial intelligence. In October, it appointed Behrad Toghi, a former Apple employee, as the AI lead. The business appointed Rashed Haq as its vice president of autonomous vehicles. Haq dedicated five years to Cruise, the autonomous vehicle firm bought and then closed by GM, serving as its head of AI and robotics. GM's restructure exemplifies the practical implementation of corporate AI adoption across the industry; it involves not merely augmenting current teams with AI tools, but intentionally reconstructing the workforce from the foundation. The particular competencies for which it is recruiting—agent development, model engineering, AI-native workflows—directly indicate the trajectory of demand within large enterprises.