General Motors is laying off approximately 600 salaried IT employees, representing more than 10% of its IT department, as of May 12, 2026, while simultaneously hiring workers with AI-specific expertise in areas like AI-native development, data engineering, cloud engineering, and prompt engineering. The cuts are part of a deliberate skills swap rather than permanent headcount reductions, as GM seeks employees who can build AI systems from the ground up rather than simply use AI as a productivity tool. The restructuring follows significant leadership changes, including the hiring of AI lead Behrad Toghi from Apple in October 2025 and the departure of three top software executives in November 2025, including chief AI officer Barak Turovsky after just nine months. The move signals that enterprise AI adoption requires fundamentally rebuilding workforces rather than layering AI tools onto existing teams, pointing to where large-enterprise technology demand is heading.
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