General Motors (GM) has announced that it will lay off about 1,750 workers from its electric vehicle and battery production plants in the United States, citing slower growth in EV demand. The cuts affect two major facilities, the Factory Zero assembly plant in Detroit (Michigan) and the Ultium Cells battery plant in Warren (Ohio), which GM operates in partnership with LG Energy Solution. According to the company, the move is part of a plan to adjust production levels and spending as the electric vehicle market expands more slowly than expected.
The largest share of these latest layoffs will come from Factory Zero, where around 1,200 employees will lose their jobs. And another 550 workers will be laid off at the Ultium Cells plant in Ohio. GM also informed that it will pause production at its battery cell facilities in Ohio and Tennessee starting in early 2026 for about six months. During this period, around 1,550 employees could face temporary layoffs while the company upgrades its operations.
GM said the decision was made in response to slower near-term EV adoption and changes in the regulatory landscape. Mainly, the company has faced pressure from weakening electric vehicle sales, high production costs, and the expiration of federal tax credits for some of its models. And these challenges have led to a buildup of unsold inventory and prompted GM to reduce output until demand stabilizes.
However, despite the job cuts, the company assured that it remains committed to its electric future. As per the firm, it plans to use the downtime to modernize plants and prepare for next-generation battery technology. Full operations are expected to resume by mid-2026, with upgraded systems aimed at improving efficiency and lowering costs.
In recent months, GM has faced several challenges and controversies. Just days ago, the company also began reducing its white-collar workforce. The firm laid off more than 200 salaried employees, mostly CAD engineers, at its Global Technical Center in Warren, Michigan. At the same time, GM has been dealing with strategic and regulatory pressures. One major example is the expiration of the US federal $7,500 electric vehicle tax credit, which has reduced incentives for buyers and made it harder for GM to boost EV sales. Last year, in November 2024, the company also cut around 1,000 jobs as part of cost-reduction efforts linked to its electric vehicle investments.
The Tech Portal is published by Blue Box Media Private Limited. Our investors have no influence over our reporting. Read our full Ownership and Funding Disclosure →
