America’s three largest automakers — General Motors, Ford Motor Company, and Stellantis — have collectively eliminated more than 20,000 U.S. salaried positions since their employment peaks earlier this decade. This represents a substantial 19% reduction in their combined white-collar workforces, a trend largely attributed to the rapid evolution of technology within the automotive sector, particularly the expanding influence of artificial intelligence.

General Motors has led these workforce adjustments, cutting approximately 11,000 U.S. salaried roles between 2022 and the end of last year, following a period of significant hiring. Ford Motor Company has seen a reduction of about 5,300 salaried employees from its 2020 peak, while Stellantis has scaled back its white-collar staff by roughly 4,000 during the same timeframe. The combined salaried employment for these companies, which reached approximately 102,000 in 2022, dropped to 88,700 by the close of last year. Earlier this week, GM further reduced its global workforce, laying off 500 to 600 salaried workers, primarily in information technology operations in Texas and Michigan, with AI integration cited as a contributing factor. Ford CEO Jim Farley has previously stated that AI could replace a significant portion of white-collar workers, leaving many behind.

Industry experts suggest that AI’s impact will be most pronounced in clerical, finance, and repetitive information technology roles, including coding. While these shifts lead to job displacement, they also spur growth in new areas critical to automakers, such as autonomous vehicles, cybersecurity, and software development. In a contrasting trend, Toyota Motor has notably expanded its U.S. white-collar workforce by approximately 31% from 2020 to 2025. Despite the widespread cuts, the Detroit automakers are simultaneously recruiting for specialized roles, with over 2,000 open positions across the three companies in the U.S., nearly 400 of which are AI-related, including more than 250 at GM.

The automotive industry faces a strategic imperative to leverage AI for enhanced efficiency and innovation, rather than solely for headcount reduction. Projections indicate that 10% to 15% of U.S. jobs could be eliminated by AI within five years, and 50% to 55% of jobs are expected to be reshaped by AI in the next two to three years. Companies must carefully navigate this transformation, ensuring that technological adoption supports productivity and fosters new skills among employees, rather than eroding institutional knowledge and critical talent.