General Motors is laying off about 1,700 workers across manufacturing sites in Michigan and Ohio, as the auto giant adjusts to slowing demand for electric vehicles.
Details of the Layoffs
The Detroit News first reported the cuts on Wednesday, covering about 1,200 jobs at an all-electric plant in the Detroit area and 550 workers at the Ultium Cells battery cell plant in Ohio. In addition, hundreds of other employees are slated for temporary layoffs. GM later confirmed the news to The Associated Press.
In a statement, the company said, "In response to slower near-term EV adoption and an evolving regulatory environment, General Motors is realigning EV capacity," while maintaining it "remains committed to our U.S. manufacturing footprint."
Production Adjustments and Impact
GM added that Ultium Cells is also "adjusting production in response to recent changes in customer plant demand." The company announced that battery cell production in Warren, Ohio and a facility in Spring Hill, Tennessee would be paused beginning January 2026.
According to The Detroit News, 850 workers at the Ohio plant are slated for temporary layoffs, along with another 700 employees in Tennessee.
GM stated that these impacted employees "may be eligible to continue receiving a significant portion of their regular wages or salary, plus benefits." The Michigan-based company said it will use the pause to make upgrades at both facilities and anticipates resuming operations by the middle of next year.
Reasons Behind the Slowdown
The dwindling EV adoption cited by GM arrives shortly after the recent expiration of federal tax credits. Before September 30, new EVs came with a US$7,500 federal tax credit, and up to US$4,000 for used vehicles. However, prospective buyers can no longer qualify. This incentive was ended as part of the massive tax and spending cut bill passed by Congress in June.
Additional Workforce Reductions
GM has also downsized other parts of its workforce recently. In the last week, that included layoffs of 200 salaried employees—mostly computer-aided design engineers in Detroit—and another 300 job cuts in Georgia, where the company is shutting an IT Innovation Center.
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