General Motors is set to dramatically reduce its workforce, announcing plans to lay off 1,750 employees indefinitely and an additional 1,670 temporarily. This significant cutback directly impacts its electric vehicle manufacturing operations, the company confirmed on Wednesday.
These layoffs are a direct response to a projected decline in demand for electric cars and trucks. This downturn is largely attributed to the recent legislative change by Congress and President Trump, who, as of September 30, ended the $7,500 federal tax credit previously offered for new electric vehicle purchases and leases.
In an official statement, GM explained, “In response to slower near-term E.V. adoption and an evolving regulatory environment, General Motors is realigning E.V. capacity.” The company emphasized its continued dedication to its U.S. manufacturing presence, stating, “Despite these changes, G.M. remains committed to our U.S. manufacturing footprint.”
General Motors stands as the second-largest seller of battery-powered vehicles in the United States, trailing only Tesla. The automaker has poured billions into its EV initiatives over recent years, aiming to launch a diverse lineup including high-end models like the luxurious Cadillac Escalade IQ, priced over $125,000, and more accessible options such as the $35,000 Chevrolet Equinox.
However, the company has recently been re-evaluating and adjusting its ambitious EV rollout plans. This reassessment anticipates major policy shifts in Washington, especially as President Trump rapidly reverses many of the previous administration’s climate and energy regulations.
The upcoming job reductions will affect both vehicle assembly and battery production facilities located in Michigan, Ohio, and Tennessee.
Notably, the Factory Zero plant in Detroit has been temporarily shut down and will not resume operations until January 5. Upon reopening, it will run on a single shift instead of two, resulting in 1,200 permanent job losses.
Furthermore, Ultium Cells, a joint venture between GM and LG Energy Solution, announced that its battery factories in Warren, Ohio, and Spring Hill, Tennessee, will cease operations on January 5, with closures expected to last until mid-next year.
Consequently, 550 workers in Ohio face indefinite layoffs, while 850 in Ohio and 700 in Tennessee will experience temporary job losses. An additional 120 temporary layoffs will occur at a stamping plant and a components plant, both located in Michigan.
These cuts follow earlier reductions this month, including 200 salaried positions at GM’s technical center in Warren, Michigan, and approximately 300 jobs eliminated with the closure of an information technology center in Georgia.
The slowdown in EV demand has been evident for some time, but a sharp decline is now widely anticipated for the next several months. GM recently incurred a $1.6 billion special charge to account for the reduced value of its electric vehicle plants and to cover expenses related to layoffs and canceled supplier contracts.
Other major automakers are also feeling the impact. Rivian, known for its electric pickup trucks, SUVs, and delivery vans, announced 600 layoffs last week. Volkswagen also plans a temporary production halt for its ID.4 electric SUV at its Chattanooga, Tennessee factory this month.