General Motors is cutting 600 information technology jobs as part of a strategic shift toward hiring artificial intelligence specialists. The layoffs, confirmed by the automaker this week, reflect a broader push across the industry to invest in AI and autonomous vehicle technology.
Who's affected and what changes
The affected roles are concentrated in GM's IT division. The company said the cuts are not across the board but tied to specific technology functions that are being restructured. Workers losing their positions will be offered severance packages and some may have the chance to apply for new roles internally, according to a company memo reviewed by multiple outlets.
GM declined to say how many new AI-focused positions it plans to create or whether the net headcount in IT will shrink. The automaker has been investing heavily in autonomous driving through its Cruise subsidiary and in software-defined vehicles that rely on machine learning and real-time data processing.
Why AI hiring now
The layoffs come as automakers race to embed more intelligence into cars and factories. GM has been hiring engineers and data scientists with expertise in computer vision, natural language processing, and robotics. The shift mirrors moves by Ford, Volkswagen, and Tesla, all of which have trimmed traditional IT roles while expanding AI teams.
Industry observers note that the change reflects a fundamental shift in how cars are built and sold. Software now accounts for a growing share of a vehicle's value, and automakers want to control that stack in-house rather than rely on outside vendors.
What happens next for the laid-off workers
GM said it will provide outplacement services and career counseling. The company is also working with local workforce development agencies in Michigan and other states where the cuts are concentrated. For the 600 employees, the transition period will last several weeks, with most departures expected by the end of the quarter.
The automaker has not disclosed whether any of the affected workers will be retrained for AI roles. That question remains open as GM and other legacy car companies try to remold their workforces for a software-driven future.
