General Motors (GM) has laid off more than 600 employees from its IT division, accounting for over 10% of the workforce in that department. This move is part of GM's strategy to pivot towards artificial intelligence (AI) and next-generation software development. The restructuring aims to replace employees whose skills no longer align with the company's future priorities with those specializing in AI technologies, data engineering, cloud infrastructure, and analytics. GM confirmed that while it is reducing headcount, it continues to hire for various IT roles, emphasizing the need for engineers who can develop AI systems from scratch rather than merely using AI tools. This shift is indicative of a broader trend in the corporate world, where companies like Microsoft, Meta, and Amazon are also restructuring their workforces around AI adoption. The changes at GM come as the company seeks to enhance its software and technology operations, particularly following the appointment of Sterling Anderson as chief product officer in 2025, who has been instrumental in consolidating GM's technology initiatives. With the automotive industry becoming increasingly software-driven, GM's restructuring highlights the critical role AI will play in its future operations.