GM Cuts 500-600 IT Jobs in Strategic Shift to Vehicle Software

General Motors is cutting approximately 500 to 600 salaried employees from its information technology unit, with notifications to affected workers beginning May 11, 2026, according to Bloomberg. The layoffs are part of an overhaul of GM’s IT department aimed at reducing costs while adding staff with specialized technology skills.

Scope and Timing

GM confirmed the cuts are focused on corporate IT positions that support the company’s internal software tools and computing systems. The company is reallocating resources and personnel toward software and artificial intelligence work for vehicles rather than traditional IT infrastructure roles.

Strategic Shift Toward Vehicle Software

The IT restructuring reflects GM’s broader strategic pivot toward vehicle-based software and AI capabilities. The company plans to roll out Google Gemini AI integration in GM vehicles beginning next year. Additionally, GM is developing an “eyes-off” driving system targeted for 2028 release, alongside a centralized computing platform also scheduled for 2028. These initiatives require specialized software and AI talent that differs from traditional corporate IT roles.

Context of Broader Cost Reduction

These layoffs follow hundreds of additional salaried employee cuts announced in October 2025 and thousands of factory layoffs. According to the source, the earlier reductions came after GM’s electric vehicle investments underperformed and U.S. sales remained flat at the start of 2026.