Key Takeaways
- General Motors eliminated approximately 600 salaried IT positions, representing over 10% of the department
- The layoffs represent a strategic workforce transformation toward AI specialization rather than simple cost-cutting
- Shares of GM declined 4.45% to close at $75.29 on May 11
- The automaker is actively recruiting for AI-native development, cloud engineering, and machine learning positions
- Multiple waves of white-collar reductions have occurred across various departments during the past year and a half
Shares of General Motors tumbled 4.45% to close at $75.29 on May 11 following confirmation that the Detroit automaker had eliminated approximately 600 salaried information technology positions — representing more than 10% of its IT division.
Bloomberg initially broke the story, which GM subsequently verified in statements to TechCrunch.
The company characterized the decision as a strategic reorganization of its IT operations. “GM is transforming its Information Technology organization to better position the company for the future,” the automaker stated publicly.
Contrary to traditional workforce reductions, this represents a skill-set pivot. Sources with knowledge of the situation informed TechCrunch that the company is simultaneously conducting aggressive hiring campaigns — albeit for entirely different capabilities.
The positions GM currently seeks to fill emphasize AI-native development, data engineering expertise, cloud-based infrastructure, machine learning model creation, agent development, prompt engineering capabilities, and emerging AI operational frameworks.
Essentially, the automaker is pursuing professionals capable of architecting AI systems from the foundation — not merely employees who leverage AI tools for productivity enhancement.
Ongoing Organizational Evolution
This round of eliminations isn’t GM’s inaugural white-collar workforce reduction. In August 2024, approximately 1,000 software engineering professionals were let go as the company refined its project portfolio priorities.
Throughout the previous 18 months, the automotive giant has systematically reduced headcount across numerous divisions while reallocating capital and resources toward artificial intelligence and advanced software capabilities.
The transformation accelerated within GM’s technology division following Sterling Anderson’s appointment as chief product officer in May 2025. Anderson, who co-founded autonomous trucking company Aurora, brings extensive experience from the self-driving vehicle sector.
Anderson wasted no time consolidating the company’s previously scattered technology operations into a unified division. This integration resulted in significant personnel changes. Three senior software leadership figures departed last November.
Those exits included Baris Cetinok, who served as senior vice president overseeing software and services product management, Dave Richardson, senior vice president managing software and services engineering operations, and Barak Turovsky, whose tenure as GM’s chief AI officer lasted merely nine months.
Strategic Talent Acquisition
The company has been systematically backfilling these vacancies with AI domain experts.
Last October, GM recruited Behrad Toghi — formerly with Apple — to serve as its AI leadership role.
Additionally, the automaker appointed Rashed Haq as vice president overseeing autonomous vehicle development. Haq brought five years of experience from Cruise, GM’s now-shuttered self-driving subsidiary, where he directed AI and robotics initiatives.
The trend is unmistakable: rather than incrementally updating its existing infrastructure, GM is fundamentally reconstructing critical segments of its technology organization with artificial intelligence as the central pillar.
GM shares settled at $75.29 on May 11, declining $3.51 during regular trading hours, with extended-hours activity showing an additional modest decrease to $75.06.
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