General Motors is reshaping its technology workforce around artificial intelligence, and the shift is already costing jobs. More than 10% of the company’s IT staff have been cut, with around 600 permanent employees affected as GM moves to align hiring with a different kind of digital future.
The reduction is not being framed as a simple cost-saving exercise. GM is reorganizing its teams to better match the demands of AI, data engineering, and increasingly complex digital systems, signaling that the company wants a workforce built for development rather than just AI tool usage.
A deliberate shift in skills
GM has described the move as a deliberate exchange of skills to support AI-related capability. The company appears to be prioritizing people who can design AI models, build AI workflows, and develop digital infrastructure from the ground up.
That is a more aggressive stance than simply layering new software on top of existing teams. It suggests GM wants AI to sit at the center of how its technology organization operates, not as a side function added to old structures.
Hiring is moving toward AI-first roles
The company’s recruitment focus now points toward AI development, data engineering, and cloud engineering. Prompt engineering and intelligent agent development have also moved into the set of priorities.
This hiring pattern shows that GM is looking for talent that can construct the underlying systems behind AI, not only employees who can use productivity tools powered by it. In practical terms, the company is trying to rebuild its technical base around the skills that support AI from the start.
Part of a longer restructuring effort
The layoffs are also part of a broader streamlining effort that has been underway for 18 months. In August 2024, GM laid off about 1,000 software workers as it concentrated resources on higher-priority initiatives.
The reorganization became more visible after Sterling Anderson joined as Chief Product Officer in May 2025. He pushed for the consolidation of GM’s previously separate technology businesses into a more efficient and integrated organization.
Elite tech talent remains in play
Even as it cuts roles, GM is still recruiting high-level experts from major technology companies such as Apple. Behrad Toghi was appointed as head of AI, while Rashed Haq became vice president of autonomous vehicles.
Both bring experience from self-driving and advanced robotics work. GM is banking on that leadership to help speed up the integration of autonomous technology into future mass-market products.
What the move signals for the industry
GM’s actions show how AI adoption is starting to change the internal shape of large companies, not just their product plans. The focus is shifting from adding AI features to redesigning organizations so they can work around AI in a fundamental way.
It also reflects growing demand for people who can build models and create independent AI workflows. For the automotive and technology industries, GM’s latest move is another sign that AI-first hiring is becoming a much more serious strategy.
Source: id.mashable.com
