General Motors Announces Layoffs Amid Declining Electric Vehicle Demand

General Motors (GM) has announced significant workforce reductions, impacting approximately 1,700 employees across its manufacturing facilities in Michigan and Ohio.

 

This decision comes as the company responds to a noticeable decline in demand for electric vehicles (EVs).

 

In the Detroit area, about 1,200 positions at GM's all-electric plant are being eliminated.

 

Additionally, the Ultium Cells battery plant in Warren, Ohio, a joint venture between GM and LG Energy Solution, is reducing its workforce by 550 employees.

 

Beyond these cuts, hundreds more are slated for temporary layoffs.

 

GM stated that these measures are in response to "slower near-term EV adoption and an evolving regulatory environment," emphasizing their commitment to the U.S. manufacturing footprint.

 

The company plans to pause battery cell production in Warren, Ohio, and Spring Hill, Tennessee, starting January 2026, with operations expected to resume by mid-year following facility upgrades.

 

The decline in EV demand coincides with the recent expiration of federal tax credits, which previously offered up to $7,500 for new EV purchases.

 

GM has also recently reduced its workforce in other areas, including 200 salaried positions in Detroit and 300 jobs in Georgia due to the closure of an IT Innovation Center.

 

These developments reflect the challenges automakers face in balancing production with fluctuating market demands and regulatory changes.