General Motors cuts 500 to 600 IT jobs to streamline operations

Published: 2026-05-12 08:02:15 ET GM

Published on 05/12/2026 at 08:02 am EDT

Key takeaways

General Motors is streamlining its IT department, resulting in the loss of around 500 to 600 permanent jobs. The move is intended to cut costs and make room for staff with expertise in emerging technologies. That is what Bloomberg reports.

Share price under pressure

The employees concerned were informed on Monday morning. GM confirmed the job losses and stated that they form part of a broader initiative to transform the IT department and prepare the company for future technological developments.

The announcement coincided with a drop in GM’s share price, which ended Monday down 4.5 percent. This downward trend follows a period of strong performance earlier this year. The cuts will affect GM sites worldwide, as the carmaker seeks to boost profitability amid flat sales in the US.

Previous layoffs

The reductions follow earlier layoffs in October, which hit both white-collar workers and factory staff. Those measures were driven by challenges surrounding GM’s investments in electric vehicles.

GM is actively modernising its IT operations, integrating more computing and software capabilities into its vehicles and deploying AI across all its processes. At the same time, the company is focusing on internal efficiency measures to improve profitability amid rising inflation fuelled by global geopolitical events.

In addition, GM has scaled back its electric vehicle initiatives in response to weakening demand, leading to write-downs worth 8.7 billion dollars (7.4 billion euros) related to its EV activities. (fc)

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