Amid a major restructuring of its information technology department, General Motors has laid off around 500 to 600 workers. This comes after the Detroit-based automaker announced layoffs last October.
Several automotive brands, such as Volkswagen and Porsche, have announced layoffs after experiencing low demand for electric vehicles. Porsche particularly took a major financial hit last year and is now taking a step back from its EV ambitions.
While GM has not incurred losses, the company continues to align with shifting market conditions and streamline its operations.
However, the question remains whether this will be the final round of layoffs by GM amid an uncertain environment.
Affected Employees Were Informed on Monday Morning
According to a report by GM Authority, managers began informing affected employees on Monday morning about the layoff, as GM is reportedly shifting resources toward “different technology priorities.”
GM stated that the decision is part of an IT transformation for the future:
“These changes are part of our ongoing work to transform our IT organization to better position the company for the future.”
The automaker has not revealed which location and which specific department have been affected by the layoff.
The automotive market is reportedly affected by high interest rates, sluggish growth, and an unpredictable demand for EVs.
Despite most financial markers being in the green, there is always scope for GM to protect margins and manage its investments in battery technology and next-generation vehicle programs.
GM CEO Mary Barra emphasized in the past that the company would prioritize “profitability and flexibility” amid the changing market conditions.
GM Hit With $12.75 Million Penalty for Secretly Selling Drivers’ Data
In other recent news about GM, Guessing Headlights reported how the American automaker landed itself in trouble by allegedly selling the names, contact information, driving behavior, and geolocation data “of hundreds of thousands of Californians to two data brokers, Verisk Analytics, Inc. (Verisk) and LexisNexis Risk Solutions (Lexis).”
GM is said to have earned approximately $20 million nationwide by selling data, which data brokers used to develop a driver-rating product. The plan was to pitch this product to insurance companies, helping them set insurance rates based on the customers’ data.
Fortunately, California drivers were not affected by the sale of data due to the state’s insurance laws that prohibit insurers from using driver data to set insurance rates. However, drivers in other states may have faced increased insurance premiums.
The California Privacy Protection Agency, also known as CalPrivacy, found after investigating that GM allegedly misled customers by implying that their data would only be used to provide OnStar subscribers with requested services, with no mention that the data would be sold to Lexis and Verisk.
GM even stated in its privacy policy that it would not sell driving and location data for insurance purposes without customer consent.
These practices reportedly violate the California Consumer Privacy Act’s (CCPA) purpose limitation and data minimization requirements.
The settlement on 8 May 2026, subject to court approval, requires GM to pay a civil penalty and adopt certain measures. Attorney General Rob Bonta revealed in a statement that GM is required to follow privacy laws:
“General Motors sold the data of California drivers without their knowledge or consent and despite numerous statements reassuring drivers that it would not do so. This trove of information included precise and personal location data that could identify the everyday habits and movements of Californians.
“Today’s settlement requires General Motors to abandon these illegal practices and underscores the importance of the data minimization in California’s privacy law — companies can’t just hold on to data and use it later for another purpose. I am proud to go to bat for the privacy rights of Californians and to collaborate with state and local partners who share the same commitment to consumer protection.”