GM’s AI Pivot: Why the Automaker is Swapping Traditional IT for AI-Native Talent
General Motors is fundamentally restructuring its technical workforce, signaling a shift in how legacy enterprises approach the artificial intelligence era. In a move that describes a “skills swap” rather than a simple cost-cutting exercise, the automaker has laid off more than 10% of its IT department—approximately 600 salaried employees—to clear the path for specialists with AI-focused backgrounds.
This transition highlights a critical trend in the tech industry: the move from using AI as a productivity tool to building AI-native systems from the ground up. GM confirmed the layoffs to TechCrunch, following initial reports from Bloomberg News.
Beyond Cost Cutting: The Strategic “Skills Swap”
While many corporate layoffs are driven solely by the bottom line, GM’s current trajectory suggests a deliberate realignment of human capital. In an emailed statement, the company noted, “GM is transforming its Information Technology organization to better position the company for the future.”
The company isn’t simply reducing headcount; it’s changing the type of talent it employs. GM continues to hire for its IT department, but the requirements have shifted. The company is now prioritizing candidates who can design systems, train models and engineer pipelines. Specifically, GM is seeking expertise in:
- AI-native development: Building applications where AI is the core engine, not an add-on.
- Agent and model development: Creating autonomous AI agents and refining large-scale models.
- Prompt engineering and AI workflows: Optimizing how humans interact with AI to streamline business processes.
- Data engineering and analytics: Managing the massive datasets required to feed AI models.
- Cloud-based engineering: Ensuring the infrastructure can support heavy AI compute loads.
A Leadership Shakeup Focused on Product and AI
This workforce transformation follows a period of significant leadership volatility within GM’s software division. The shift accelerated after Sterling Anderson, a veteran of the autonomous vehicle industry and co-founder of Aurora, joined the company in May 2025 as chief product officer.
As Anderson worked to consolidate GM’s fragmented technology businesses into a single organization, several top executives departed last November. Those leaving included Baris Cetinok (senior vice president of software and services product management), Dave Richardson (senior vice president of software and services engineering), and Barak Turovsky, who served as the company’s chief AI officer for nine months.
To fill these gaps, GM has recruited specialized AI leadership. In October, the company hired Behrad Toghi, formerly of Apple, as AI lead. Rashed Haq joined as vice president of autonomous vehicles, bringing experience as the former head of AI and robotics at Cruise.
The Bigger Picture: Enterprise AI Adoption
GM’s strategy serves as a blueprint for how large-scale enterprises are actually implementing AI. For years, the narrative was that AI would simply make existing workers more efficient. GM’s actions suggest the opposite: that true AI integration requires rebuilding the workforce from the ground up.
This isn’t the first time GM has trimmed its white-collar ranks to prioritize high-priority initiatives. In August 2024, the company cut about 1,000 software jobs to refocus on quality and AI.
- Workforce Shift: Over 10% of the IT department (~600 roles) eliminated to make room for AI specialists.
- Priority Skills: Focus has shifted to AI-native development, model engineering, and data pipelines.
- Leadership Change: New AI-centric leadership brought in from Apple and Cruise to drive product consolidation.
- Industry Signal: Enterprise AI adoption is moving toward “rebuilding” rather than “augmenting” existing teams.
Frequently Asked Questions
Is GM stopping all IT hiring?
No. The company is still hiring for IT roles, but it is targeting a different skill set—specifically those capable of AI-native development and model engineering rather than traditional IT maintenance.
Why is GM restructuring its software team now?
The company is consolidating its disparate technology businesses into one organization under the leadership of Chief Product Officer Sterling Anderson to better position itself for the future of AI and autonomous vehicles.
What does “AI-native development” mean in this context?
It means designing software where AI is the foundational component of the architecture, rather than simply adding an AI chatbot or tool on top of an existing legacy system.
As GM continues to integrate these new capabilities, the automotive industry may see a wider trend of “skills swaps,” where legacy engineering roles are replaced by AI-first architects to maintain competitiveness in an increasingly autonomous market.