GM just laid off hundreds of IT workers to hire those with stronger AI skills
TechCrunch • • business
Key Points:
- General Motors has laid off about 600 salaried IT employees, over 10% of its IT department, to replace workers whose skills no longer align with the company's AI-focused direction.
- The layoffs are part of GM's broader IT transformation aimed at preparing the company for the future by hiring talent with expertise in AI-native development, data engineering, cloud-based engineering, and AI workflow design.
- GM continues to hire new employees with advanced AI skills, including recent hires like AI lead Behrad Toghi from Apple and Rashed Haq, former head of AI and robotics at Cruise.
- The restructuring follows leadership changes in GM's software division, including the departure of three top executives and the appointment of Sterling Anderson as chief product officer to consolidate GM’s technology businesses.
- GM's approach reflects a broader industry trend where enterprise AI adoption involves rebuilding teams with specialized AI capabilities rather than simply adding AI tools to existing staff.