GM’s EV Struggles Trigger Mass Layoffs In Three States

General Motors is set to lay off more than 2,000 workers in Michigan, Ohio, and Tennessee, the company announced on Wednesday, citing “slower” EV sales.

GM’s Detroit-area electric vehicle plant was hit the hardest, with roughly 1,200 employees being informed that they were no longer needed, The Detroit News reported. The all-electric Factory Zero Detroit-Hamtramck Assembly Center will shut down completely from November 24 until January 5, after which it will operate on a single shift. Around 2,000 employees will stay employed at the plant, and cuts will be based on seniority.

Another 550 employees will be cut at GM’s Ultium Cells battery plant near Youngstown, Ohio, with 850 more workers expected to be laid off temporarily. At another GM Ultium Cells battery plant in Spring Hill, Tennessee, 700 workers will be temporarily laid off as well, according to The Detroit News.

“In response to slower near-term EV adoption and an evolving regulatory environment, General Motors is realigning EV capacity,” the Michigan-based automaker said. “Despite these changes, GM remains committed to our U.S. manufacturing footprint, and we believe our investments and dedication to flexible operations will make GM more resilient and capable of leading through change. Impacted employees may be eligible for SUB pay and benefits in accordance with the National GM-UAW Agreement.”

Last week, GM said it would lay off around 200 salaried employees at its global tech campus in metro Detroit as part of a restructuring effort for its “design engineering teams,” CNBC reported.

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After President Donald Trump eliminated the Biden administration’s $7,500 EV tax credit and cut back on regulations for gas-powered vehicles, GM said that it would lose around $1.6 billion related to changes the company would have to make to its EV rollout, NBC News reported.

“Following recent U.S. government policy changes, including the termination of certain consumer tax incentives for EV purchases and the reduction in the stringency of emissions regulations, we expect the adoption rate of EVs to slow,” GM said last month.

During the third quarter of this year, the automaker reported huge sales of EVs, doubling the numbers reported in the same quarter last year. The Q3 bump in EV sales, however, came before the tax credit was terminated on September 30, as part of Trump’s “Big Beautiful Bill.”

The elimination of the EV tax credit and regulatory changes have also affected major EV companies, such as Tesla and Rivian, and other auto giants that have focused on producing more electric vehicles. Tesla sales dropped this year, and GM and Ford have pumped the brakes on EV production. Due to the Trump administration’s recent actions, Ford CEO Jim Farley predicted that “EV adoption will now only be about 5% of the U.S. market.”