General Motors has begun another major round of layoffs, this time targeting hundreds of salaried employees inside its information technology division. The cuts reportedly affect between 500 and 600 workers, primarily in Michigan and Texas, and arrive at a particularly awkward moment for the automaker.
The layoffs come as GM aggressively pivots toward artificial intelligence, software-defined vehicles, and next-generation digital systems. Yet while the company is eliminating IT-related jobs domestically, public labor filings show it is also continuing to recruit foreign workers for many of the same categories of employment.
That contrast is already fueling criticism online, especially among current and former employees who say the layoffs were sudden and poorly communicated. Several workers posting on Reddit described being informed their positions had been eliminated despite recent reassurances from managers that their jobs were safe.
GM has confirmed the cuts, describing them as part of an effort to “transform” its IT organization and better position the company for the future.
GM’s Software And AI Push Is Reshaping The Workforce
The auto industry’s transformation into a software-heavy business has dramatically changed the types of employees automakers now prioritize. Traditional engineering and administrative roles are increasingly being replaced or consolidated as companies focus more heavily on artificial intelligence, cloud computing, autonomous driving systems, and vehicle software development.
According to multiple reports, GM is actively searching for workers skilled in AI-native development, prompt engineering, data analytics, cloud infrastructure, and machine learning systems. The company currently still lists dozens of open IT-related positions on its careers website despite the layoffs.
GM isn’t the only company making changes, though. Ford, BMW, Nissan, and other major automakers have all expanded AI-focused hiring and software operations over the past year as vehicles become increasingly dependent on advanced computing systems.
GM’s own leadership has leaned heavily into that future. CEO Mary Barra has repeatedly emphasized software and digital services as major long-term revenue opportunities, while the company recently consolidated several technology divisions under former Aurora co-founder Sterling Anderson, before additional executive restructuring followed.
Foreign Worker Hiring Is Drawing Scrutiny
The controversy surrounding the layoffs intensified after reports highlighted GM’s ongoing H1B visa applications for software and engineering roles. Public Labor Condition Application filings reportedly show the automaker continuing to recruit foreign workers in categories closely related to the same departments now experiencing layoffs.
According to the reports, GM submitted at least 132 H1B-related applications between January and May of 2026. Many of those positions were tied to software engineering, programming, testing, cybersecurity, and vehicle technology development roles located in Warren, Michigan, and Austin, Texas, the same regions most impacted by the layoffs.
Critics argue the optics are especially bad given the current state of the economy and rising concerns surrounding white-collar job security. The combination of AI-driven restructuring and foreign labor recruitment has become an increasingly sensitive issue across the tech and automotive sectors alike.
At the same time, it is important to note that H1B hiring itself is not unusual in the automotive industry. Major automakers, suppliers, and technology companies have relied on specialized international talent for decades, particularly in highly technical software and engineering roles.
Still, without additional clarity from GM regarding how hiring and layoffs overlap internally, the situation is likely to continue generating backlash.
Layoffs Reflect An Industry Transition
GM’s latest cuts are not happening in isolation. Across Detroit’s automakers, thousands of salaried positions have disappeared over the past several years as companies race to adapt to electrification, automation, and AI-driven development.
Industry data cited by CNBC suggests Ford, GM, and Stellantis have collectively reduced their salaried U.S. workforce by roughly 20,000 positions from recent peaks earlier this decade. Many of the eliminated jobs have come from office management, finance, IT, coding, and software-related departments.
Ironically, software was once viewed as one of the safest career paths in the automotive industry. Now, many of those same workers are discovering that AI itself may be reshaping the field faster than expected.
GM remains profitable overall, largely thanks to strong truck and SUV sales, but the company is still navigating billions in EV-related write-downs, rising logistics costs, and continuing uncertainty surrounding tariffs and global supply chains.
For affected employees, however, the strategy discussions probably offer little comfort. Behind every restructuring announcement are real workers suddenly forced into an increasingly uncertain job market where the very technologies they helped develop may now be replacing them.