General Motors lays off hundreds of tech workers amid AI push and software overhaul

General Motors is laying off hundreds of salaried employees in its information technology operations as the automaker restructures parts of its software business and sharpens its focus on AI initiatives.

For years, legacy automakers warned that the future of the car business would look more like Silicon Valley than Detroit. Now the cost of that transition is showing up in another round of job cuts.

The cuts began Monday and are expected to affect roughly 500 to 600 employees in Austin, Texas, and Warren, Michigan, according to a person familiar with the matter. GM confirmed the layoffs after Bloomberg first reported the move, though the company declined to disclose exact numbers.

“General Motors Co. plans to cut hundreds of salaried workers from its information technology ranks in an effort to trim costs and clear the way to bring in staff with skills in other technology areas,” Bloomberg reported.

“The reductions will affect about 500 to 600 employees,” Bloomberg added, citing people familiar with the matter. “Management began notifying affected workers Monday morning,” said the people, who asked not to be identified.

Tech layoffs hit Detroit as automakers race deeper into AI

The reductions mark another shake-up inside GM’s tech and software operations less than two years after the auto giant eliminated more than 1,000 software and services jobs globally. That earlier restructuring came as the automaker sharpened its focus on projects tied to its Super Cruise driver-assistance system, infotainment software, and artificial-intelligence efforts.

The latest cuts land at a time when traditional carmakers are under mounting pressure to operate more like software companies. Automakers are pouring billions into AI, autonomous driving systems, connected vehicle platforms, and digital services, all in an attempt to compete with newer rivals that treat software as a core part of the vehicle business rather than a support function.

Inside GM, that shift has already triggered major leadership and organizational changes. Former Apple executive Mike Abbott, who joined the company to help accelerate its software ambitions, departed in March for health reasons less than a year after arriving. Abbott had been viewed as a key figure in GM’s effort to modernize its technology stack and build a stronger in-house software culture.

Many of the affected roles are tied to GM’s tech campus near Detroit, a site that has become central to the company’s push into software-defined vehicles and AI-assisted systems.

The layoffs arrive during a broader wave of workforce reductions across the tech and automotive sectors. Companies are spending aggressively on AI infrastructure and automation, though many are trimming staff in areas viewed as overlapping, slower-moving, or less aligned with future priorities.

GM has spent the past several years repositioning itself as more than a car manufacturer. CEO Mary Barra has repeatedly framed software, subscription services, electric vehicles, and autonomous technology as major pillars of the company’s long-term strategy.

That strategy is still moving forward. The workforce behind it is getting smaller.