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    GM Shares Decline Following 600 IT Layoffs Amid Strategic AI Workforce Transformation

    Oliver DaleBy Oliver DaleMay 12, 2026
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    Contents:

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    • Key Highlights
    • Ongoing Organizational Evolution
    • Strategic Talent Acquisition

    Key Highlights

    • General Motors eliminated approximately 600 IT positions, representing over 10% of the department
    • The workforce reduction reflects a strategic pivot toward AI-specialized roles
    • Shares closed down 4.45% at $75.29 on May 11
    • The automaker is actively recruiting for AI-native development, data engineering, and model development positions
    • White-collar workforce reductions have occurred across multiple divisions during the past 18 months

    Shares of General Motors declined 4.45% to $75.29 on May 11 following confirmation that the automaker had eliminated approximately 600 salaried positions within its IT department — representing more than 10% of the division’s total workforce.


    GM Stock Card
    General Motors Company, GM

    Bloomberg initially broke the story, which GM subsequently verified to TechCrunch.

    The automaker characterized the decision as a strategic restructuring of its technology operations. “GM is transforming its Information Technology organization to better position the company for the future,” the company stated.

    These layoffs represent more than simple headcount reduction. According to a source with knowledge of the situation who spoke with TechCrunch, GM is simultaneously conducting active recruitment — targeting entirely different skill sets.

    The positions GM currently seeks to fill concentrate on AI-native development, data engineering, cloud-based engineering, model development, agent development, prompt engineering, and emerging AI workflows.

    Essentially, GM seeks professionals capable of constructing AI systems from the ground up — specialists who can architect these technologies rather than merely utilize AI tools for productivity enhancement.

    Ongoing Organizational Evolution

    These reductions mark another chapter in GM’s white-collar workforce adjustments. During August 2024, the company eliminated roughly 1,000 software engineering positions while refining its focus toward priority initiatives.

    Throughout the preceding 18 months, GM has reduced headcount across various departments while reallocating capital and resources toward AI and software development capabilities.

    The transformation velocity within GM’s software division accelerated following Sterling Anderson’s appointment as chief product officer in May 2025. Anderson, who co-founded Aurora, an autonomous trucking venture, brings extensive experience from the autonomous vehicle sector.

    Anderson moved swiftly to unify GM’s previously fragmented technology operations into a single cohesive unit. This consolidation effort resulted in several notable departures. Last November, three senior software leaders exited the organization.

    The departures encompassed 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 had joined as GM’s chief AI officer just nine months prior.

    Strategic Talent Acquisition

    GM has been addressing these leadership vacancies through specialized AI recruitment.

    During October, the automaker secured Behrad Toghi — formerly with Apple — to serve as AI lead.

    The company additionally appointed Rashed Haq as vice president of autonomous vehicles. Haq brings five years of experience from Cruise, GM’s self-driving unit that ceased operations, where he directed AI and robotics initiatives.

    The hiring strategy demonstrates clear direction: GM is fundamentally reconstructing core segments of its technology organization with AI expertise as the foundation.

    GM shares settled at $75.29 on May 11, reflecting a $3.51 decline during regular trading hours, with after-hours activity showing an additional modest drop to $75.06.

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    Oliver Dale
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    Editor-in-Chief of Computing.net and founder of Kooc Media, A UK-Based Online Media Company. Believer in Open-Source Software, Blockchain Technology & a Free and Fair Internet for all. His writing has been quoted by Nasdaq, Dow Jones, Investopedia, The New Yorker, Forbes, Techcrunch & More. Contact Oliver@blockonomi.com

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