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GM to cut 500-600 jobs in IT revamp

General Motors plans to cut about 500 to 600 salaried employees in its information technology unit.

The automaker began notifying workers on May 11 as it looks to lower costs and add staff with other tech skills.

GM confirmed the cuts and said they are part of an overhaul of its IT department.

The move follows hundreds of salaried cuts in October and thousands of factory layoffs after its electric vehicle investments underperformed while US sales were flat at the start of 2026.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

These layoffs combine a change in direction with efforts to cut costs

  • The cuts mainly hit corporate IT jobs that support GM’s internal software tools and computing systems 1.
  • GM is shifting money and staff toward software and AI work for vehicles, including a centralized computing platform set to arrive in 2028 2.
  • Google Gemini AI is set to start rolling out in GM vehicles next year. GM also plans an “eyes-off” driving system for 2028, which calls for more specialized software and AI talent than some older corporate IT roles 3.

As cars rely more on software, older industries need a different mix of talent

  • GM’s decision suggests industrial companies need deeper software expertise to keep up 2.
  • The shift makes staffing harder as demand rises for software, AI, and advanced driver-assistance systems, which are features that help cars steer, brake, and accelerate in some situations, while legacy engineering and IT skills still matter 4, 3.
  • Other industrial companies may face similar workforce changes as they reshape teams and hiring around software-based products and services 1.

Recent General Motors developments

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