General Motors is laying off hundreds of information technology employees as the automaker aggressively restructures its workforce around artificial intelligence and advanced software engineering skills.
According to TechCrunch, the company cut more than 10 percent of its IT department, affecting about 600 salaried workers. But the layoffs are not simply cost cutting measures. Instead, GM is carrying out what industry observers describe as a skills swap, replacing traditional IT roles with employees who have stronger AI focused expertise.
The company confirmed the restructuring, saying it is transforming its technology organization to better prepare for the future. Behind that statement is a broader shift unfolding across corporate America as companies increasingly rebuild teams around artificial intelligence capabilities rather than conventional software functions.
GM is now prioritising hires with experience in AI native development, data engineering, cloud infrastructure, analytics, prompt engineering, and agent based AI systems. In practical terms, the automaker wants engineers capable of designing AI systems and workflows from the ground up instead of workers who simply use AI tools to improve productivity.
The restructuring reflects how deeply AI is beginning to reshape the automotive industry. Modern vehicles are becoming increasingly software driven, with manufacturers investing heavily in autonomous systems, intelligent assistants, predictive maintenance and AI powered manufacturing operations.
The latest cuts also continue a wider restructuring effort inside GM. In 2024, the company laid off roughly 1,000 software employees as it redirected resources toward high priority AI and technology initiatives. Since then, GM has brought in several executives with artificial intelligence and autonomous vehicle backgrounds to accelerate the transition.
Among the company’s recent hires is Behrad Toghi, formerly of Apple, who joined as AI lead. GM also appointed Rashed Haq, previously involved with the now shuttered self driving company Cruise, as vice president overseeing autonomous vehicle initiatives.
The company’s strategy mirrors a growing pattern across the technology and corporate sectors. Firms including Cloudflare, Coinbase and Airbnb have recently linked workforce reductions or restructuring to increasing AI adoption and automation.
Researchers say AI skills are rapidly becoming one of the strongest hiring advantages in the modern labor market. A recent study published on arXiv found that candidates with AI related expertise significantly improved their chances of receiving interview invitations across multiple industries.
For GM, the restructuring signals something larger than a temporary workforce adjustment. It reflects how major corporations are increasingly redesigning themselves around artificial intelligence as companies race to stay competitive in an economy where AI capabilities are quickly becoming central to business strategy and product development.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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