Quick Summary
- General Motors terminated approximately 600 IT employees, representing over 10% of the department
- The layoffs represent a strategic pivot toward artificial intelligence expertise rather than simple cost-cutting
- Shares of GM declined 4.45% to reach $75.29 on May 11
- The automaker is actively recruiting for AI development, data engineering, and machine learning positions
- The company has reduced white-collar positions across multiple divisions throughout the last year and a half
Shares of General Motors tumbled 4.45% to settle at $75.29 on May 11 following confirmation that the Detroit automaker had eliminated approximately 600 salaried positions within its IT department — representing more than one-tenth of the division’s total workforce.
Bloomberg initially broke the story, which GM subsequently verified in statements to TechCrunch.
The company characterized the decision as a strategic reorganization of its technology operations. “GM is transforming its Information Technology organization to better position the company for the future,” the automaker stated officially.
This move goes beyond simple workforce reduction. According to a source with knowledge of the situation who spoke with TechCrunch, the company is simultaneously recruiting new personnel — but for vastly different competencies.
The positions GM currently seeks to fill emphasize AI-native software development, data engineering expertise, cloud-based infrastructure engineering, machine learning model creation, AI agent development, prompt engineering capabilities, and emerging AI-driven workflows.
Essentially, the automaker is seeking professionals capable of architecting AI systems from the foundation up — not merely employees who incorporate AI tools into routine tasks.
Ongoing Organizational Evolution
This represents the latest in a series of white-collar workforce reductions at GM. Back in August 2024, approximately 1,000 software professionals were let go as the organization concentrated resources on critical initiatives.
Throughout the preceding 18 months, GM has systematically reduced headcount across numerous divisions while reallocating capital toward artificial intelligence and software engineering capabilities.
The transformation rate within GM’s technology operations accelerated following Sterling Anderson’s appointment as chief product officer in May 2025. Anderson, who co-founded the autonomous trucking company Aurora, brings extensive autonomous vehicle industry experience.
He moved swiftly to unify GM’s previously dispersed technology operations into a single cohesive division. That consolidation came with personnel changes. Three senior software leaders departed the organization last November.
Those exits included Baris Cetinok, who served as senior vice president of software and services product management, Dave Richardson, senior vice president overseeing software and services engineering, and Barak Turovsky, who had held the position of chief AI officer for merely nine months.
Strategic Hiring for AI Expertise
General Motors has been actively recruiting AI specialists to fill critical positions.
In October, the company brought aboard Behrad Toghi — formerly with Apple — to serve as AI lead.
Additionally, GM hired Rashed Haq as vice president overseeing autonomous vehicle operations. Haq previously spent five years with Cruise, GM’s now-defunct self-driving subsidiary, where he led AI and robotics initiatives.
The hiring strategy reveals a clear direction: GM is not simply maintaining its current technological infrastructure. The company is fundamentally reconstructing critical segments of its technology organization with artificial intelligence as the central focus.
GM stock finished trading at $75.29 on May 11, representing a $3.51 decrease for the session, with extended-hours trading indicating an additional modest drop to $75.06.
