General Motors has laid off approximately 600 salaried IT workers-over 10% of its IT department-as it pivots to hiring specialists in artificial intelligence, data engineering, and cloud-based development. This talent swap, confirmed May 11, reflects a broader strategy to transform the automaker's technology organization.
This is not an isolated move. In August 2024, GM cut about 1,000 software jobs, directing resources to AI and quality initiatives for automotive applications. Combined, GM has eliminated roughly 1,600 traditional tech roles in under two years while posting job listings for AI-native development, agent and model development, and prompt engineering.
The restructuring aligns with a key leadership change: Sterling Anderson, co-founder of autonomous vehicle company Aurora, was appointed chief product officer in 2025, underscoring GM's commitment to integrating AI across its product lineup, especially in autonomous driving.
For investors, the question is whether this shift will translate into tangible product improvements and cost savings. Tesla has long branded itself as an AI company that builds cars, and GM is attempting to close that perception gap with organizational change rather than marketing.