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Orgo-Life the new way to the future Advertising by Adpathway3 min readMay 12, 2026 02:55 PM IST
The move highlights how large corporations are increasingly restructuring their workforces around AI adoption instead of merely integrating AI tools into existing teams. (Image: Reuters)
General Motors has laid off more than 600 employees from its IT division as the automaker aggressively reshapes its workforce around artificial intelligence and next-generation software development.
The cuts affect more than 10 per cent of the company’s IT department and are part of what appears to be a broader “skills swap” strategy, replacing workers whose expertise no longer aligns with the company’s priorities with employees specialising in AI-focused technologies.
While confirming the layoffs, GM said the restructuring is designed to better prepare the company for the future.
“GM is transforming its Information Technology organisation to better position the company for the future,” the company said in a statement to the TechCrunch website.
The layoffs are not simply about reducing headcount. According to reports, GM is continuing to hire for several IT roles, but the company is now prioritising candidates with expertise in artificial intelligence, data engineering, cloud infrastructure, analytics, and AI-native software development.
The automaker is specifically looking for engineers who can build AI systems from the ground up, including designing machine learning models, developing AI agents, managing data pipelines, and creating AI-driven workflows, rather than employees who use AI only as a productivity tool.
The move highlights how large corporations are increasingly restructuring their workforces around AI adoption instead of merely integrating AI tools into existing teams.
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GM has spent the past 18 months steadily reorganising its software and technology operations. In August 2024, the company cut around 1,000 software-related jobs as part of a wider restructuring effort.
The transformation accelerated after Sterling Anderson joined the company in 2025 as chief product officer. Anderson, previously known for his work in the autonomous vehicle industry and as co-founder of Aurora, has reportedly pushed to consolidate GM’s technology and software businesses into a single organisation.
Several senior software executives departed the company during the restructuring, including former software and AI leaders overseeing engineering and product management.
At the same time, GM has increased hiring of AI-focused executives and engineers. The company recently hired former Apple employee Behrad Toghi as AI lead and appointed former Cruise executive Rashed Haq as vice-president of autonomous vehicles.
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The changes reflect a growing trend across the technology and automotive industries, where companies are using AI adoption as both a productivity strategy and a reason to redesign their workforce structures.
Across sectors, firms including Microsoft, Meta, and Amazon have also increased investments in AI while simultaneously reducing traditional roles.
For GM, the restructuring signals that the future of automotive software development may rely heavily on AI-native systems, autonomous technologies, and advanced cloud-based infrastructure as the company competes in an increasingly software-driven industry.
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