GM Lays Off 500-600 IT Workers as AI Plays a Role in Cuts
General Motors terminated about 500 to 600 employees Monday, mostly in information technology roles across Austin, Texas and Warren, Michigan. The company cited workforce restructuring and cost reduction as reasons for the cuts.
Artificial intelligence contributed to the decision, though it was not the sole factor, according to a person at GM with knowledge of the layoffs. The automaker continues to hire IT workers with AI expertise even as it eliminates other positions.
How the Layoffs Unfolded
Affected employees received an ominous email about a 15-minute virtual meeting. During the call, an HR representative delivered a scripted termination message. The meeting ended abruptly.
"No appreciation or empathy. No questions. Nothing," said a data analyst who had worked at GM for more than a decade.
Two laid-off workers told CNBC their teams had recently undergone restructuring and faced pressure to adopt AI tools in their daily work. One veteran programmer said the company pushed AI adoption broadly but failed to acknowledge that productivity gains depend on understanding the business itself.
Severance and Support Offered
GM offered severance based on tenure. Employees with one to four years of service received two months of pay. The scale increased to six months for those with 12 or more years.
The company provided lump-sum health care payments ranging from $2,000 to $6,000. Unused vacation and sick time were forfeited unless state law prohibited it.
GM also offered mental health support through Lyra and career coaching through outplacement firm LHH. All benefits require employees to sign a release agreement and return company vehicles and equipment.
GM's Hiring Continues
Despite the layoffs, GM posted roughly 80 open IT positions as of Tuesday. The postings include roles in AI, motorsports, and autonomous vehicles.
GM declined to discuss how AI specifically influenced the termination decisions. A company statement said the automaker was "transforming its Information Technology organization to better position the company for the future."
The cuts reflect a broader trend across major corporations. Amazon, Meta, Oracle, and Block have announced layoffs while emphasizing AI's role in automating work and increasing productivity with smaller teams.
For HR professionals managing similar workforce transitions, understanding AI for Human Resources can help navigate recruitment, talent management, and workforce planning decisions. HR leaders should also consider the AI Learning Path for CHROs, which covers AI workforce analytics and talent strategy during organizational change.
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