The layoffs affect plants in Michigan, Ohio, and Tennessee as EV demand slows.
General Motors is cutting thousands of jobs across its electric vehicle and battery manufacturing plants in the U.S., citing slower near-term EV adoption and changing market conditions. The company confirmed that more than 1,700 manufacturing roles will be eliminated as it realigns EV production capacity as reported by CNBC.
Around 1,200 employees at GM’s Factory Zero EV plant in Detroit, Michigan, are being placed on indefinite layoff, while an additional 700 workers are being temporarily laid off at Ultium Cells battery factories in Ohio and Tennessee.
GM will idle both battery plants starting January 5, with plans to resume production in mid-2026, according to The Wall Street Journal.
Reason Behind the Cuts
GM said the decision reflects “slower near-term EV adoption and an evolving regulatory environment.” The company noted that it remains committed to its U.S. manufacturing footprint and expects its flexible operations to help it stay resilient amid shifting industry conditions.
Earlier this month, GM reported a $1.6 billion financial hit as it restructured its EV plans and announced white-collar layoffs. The automaker also recently shut down BrightDrop, its commercial electric van program, and signaled a reduced focus on EVs in the U.S. market following the expiration of the $7,500 federal EV tax credit and loosened regulations on internal combustion vehicles.
Restructuring and Future Focus
Despite the layoffs, GM says it remains committed to investing in battery and charging technologies, even as it phases out its hydrogen fuel cell research. The company believes that streamlining operations will make it “more resilient and capable of leading through change.”
Featured image credits: REBECCA COOK/REUTERS
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