GM lays off hundreds of IT workers amid AI push

General Motors has laid off nearly 600 employees from its IT division, representing around 10% of the department, as the automaker accelerates its transition toward an AI-driven technology strategy. The company said the restructuring is part of a broader effort to modernize operations and prepare for the future of software-defined vehicles, automation and artificial intelligence. GM is now prioritizing hiring in areas such as AI-native development, cloud engineering, prompt engineering, data analytics and autonomous systems while phasing out roles tied to older software structures. The overhaul follows a series of workforce reductions over the past two years and reflects a major transformation under Chief Product Officer Sterling Anderson, who has been consolidating GM’s technology operations and recruiting top AI talent from companies like Apple and Cruise. Executives also pointed to economic pressures, tariffs, rising competition from low-cost Chinese automakers and the rapid growth of AI coding tools as factors reshaping the company’s workforce strategy. The layoffs add to a wider wave of AI-related job cuts across industries, as companies increasingly restructure around automation, efficiency and emerging digital technologies.