General Motors Announces Job Cuts Amid Declining EV Demand

NEW YORK — General Motors is set to lay off around 1,700 workers from its manufacturing locations in Michigan and Ohio in response to a drop in electric vehicle demand.

According to reports from Detroit News, the layoffs will affect approximately 1,200 positions across electric plants in the Detroit area, along with 550 jobs at the Ultium Cells battery plant in Ohio. GM later confirmed these layoffs to The Associated Press.

The company stated, “General Motors is realigning its EV production capacity in response to a near-term slowing in EV adoption and an evolving regulatory environment.” They added that they remain committed to maintaining their manufacturing presence in the U.S.

Additionally, GM noted that Ultium Cells is making adjustments in production to accommodate shifts in customer demand. Starting January 2026, battery cell production at facilities in Warren, Ohio, and Spring Hill, Tennessee, will temporarily halt.

Reports suggest that 850 workers at the Ohio plant and 700 employees in Tennessee will be “furloughed.” GM has mentioned that these employees might still be able to receive a significant portion of their regular pay and benefits during this downtime. They intend to use this period to renovate the facilities and anticipate resuming operations by mid-next year.

The downturn in EV adoption that GM referenced follows the expiration of various federal tax credits. Prior to September 30, prospective buyers enjoyed a $7,500 tax credit for new EVs and up to $4,000 for used vehicles. However, these incentives ceased as part of a larger tax and spending cut package passed by Congress in June.

Recently, GM has also trimmed jobs in other sectors, which includes laying off 200 salaried employees, mainly design engineers, in Detroit last week, as well as cutting 300 positions in Georgia due to the closure of an IT innovation center.