GM cuts IT staff to prioritize AI-focused roles

General Motors has laid off more than 10% of its IT department, amounting to about 600 salaried employees, as part of a strategic shift to recruit staff with AI-focused backgrounds. This move reflects a wider trend in the U.S. automotive industry, where legacy manufacturers are restructuring their salaried workforces. According to CNBC, Ford, GM, and Stellantis have collectively cut more than 20,000 U.S. salaried jobs, representing 19% of their combined workforces from recent employment peaks, as companies pivot toward AI-native development.

Other mobility companies are adjusting their technology strategies. Samsara trained a model to detect potholes and is now selling the product to cities, including Chicago. Meanwhile, Tesla Robotaxis have crashed at least twice since July 2025 while being remotely driven by a teleoperator, according to information submitted to the National Highway Traffic Safety Administration (NHTSA). In response to environmental challenges, Waymo issued a software update to its fleet of nearly 4,000 vehicles to help them avoid flooded roads.

Several startups and mobility firms also announced major financial and corporate developments:

• Mind Robotics: The Rivian spinoff Mind Robotics, founded by RJ Scaringe, raised $400 million, following a $500 million round two months prior. Rivian is the parent company of Mind Robotics. Investors have poured $12.3 billion into Scaringe’s three startups, a figure that excludes close to $12 billion in gross proceeds from Rivian’s IPO and nearly $7 billion from deals with VW and Uber.
• Arkeus: The Australian startup raised $18 million in a Series A funding round.
• Aseon Labs: Based in Redwood City, California, the startup emerged from stealth with undisclosed backing.
• Rapido: The Indian ride-hailing company raised $240 million, valuing the company at $3 billion. The round was part of a larger $730 million financing.
• Quantum Systems: The German drone startup is in talks to raise around €600 million ($703 million).
• Redwood Materials: The company hired Deepak Ahuja, former finance chief at Tesla, as its new CFO.
• Uber: The company is expanding in India with two new engineering campuses designed to accommodate about 9,600 people.
• Disrupt: The annual tech conference in San Francisco will be held in October.

Why it matters

Automotive companies are aggressively restructuring their workforces to prioritize AI-native development, signaling a shift in how legacy manufacturers compete with tech-first mobility firms.