General Motors laid off approximately 1,700 workers across manufacturing sites in Michigan and Ohio, attributing the cuts to a decline in demand for electric vehicles. The layoffs affected Detroit’s electric vehicle plant and Ohio’s Ultium Cells battery cell plant, with temporary layoffs also reported at the Tennessee facility.
The company confirmed 1,200 layoffs at the Detroit plant and 550 reductions at the Ohio Ultium Cells site, alongside 850 temporary furloughs at the Ohio location and 700 at the Tennessee plant. GM stated that battery cell production at its Ohio and Tennessee facilities will be paused starting in January, with plans to resume operations by mid-2026. The company cited slower near-term EV adoption and shifting regulatory conditions as reasons for the realignment of EV capacity.
The decline in demand followed the expiration of a federal tax incentive for electric vehicles under the Trump administration, which ended on September 30. J.D. Power projected a 60% drop in EV sales for October, while the removal of emissions regulations further impacted the sector. GM recently recorded a $1.6 billion charge related to adjustments in its EV strategy.
GM shares fell 0.3% to $69.65 during midday trading on Wednesday, marking a 35% gain year-to-date.