GM Cuts Over 1,700 Jobs as It Shifts Gears to Meet EV Demand

Across sites in both Michigan and Ohio, General Motors is laying off over 1,700 employees, citing a slowing demand for EVs.

By the Numbers

As part of a restructuring effort, General Motors announced Wednesday that some 1,700 workers across the eastern Midwest will be laid off. This includes 1,200 at Detroit's all-electric plant, as well as 850 temporary layoffs at an Ohio Ultium Cells plant. Additionally, 550 jobs were cut at the same Ohio plant, whereas GM plans to lay off 700 at another Ultium Cell plant in Tennessee.

GM has also downsized other parts of its workforce in previous weeks. Before Wednesday's announcement, the company laid off 200 salaried employees in Detroit. The company also cut 300 jobs at its Georgia IT Innovation Center, which is now scheduled to shut down.

Sparked Change, Future Plans

Prior to September's $7,500 federal incentive discontinuation, GM reported sales more than doubling during last year's third quarter. However, following consumers?ˉ racing to use up available incentives, the discontinuation points to a decline in demand after Q3 this year.

The Ohio and Tennessee plants impacted are expected to pause production in January, GM announced. However, the company expects to resume operations by mid-2026, using the time paused to upgrade its facilities.

Following a $1.6 billion impact from plans not quite aligning with expectations in Q3, GM appears to be undergoing a reassessment of its manufacturing processes and EV capacity.

Image credit: Stock all/Shutterstock

Find Thomasnet Suppliers and Services

Automotive Parts

Batteries

Electric Vehicles