General Motors said Wednesday it plans to lay off about 1,200 workers at its Detroit-area all-electric factory and eliminate 550 jobs at its Ultium battery cell facility in Ohio.
GM will also temporarily lay off 850 workers at the Ohio plant and another 700 employees in Tennessee.
“In response to slower adoption of electric vehicles in the near term and an evolving regulatory environment, General Motors is realigning electric vehicle capacity,” the company 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 able to lead change.”
“Ultium Cells is adjusting production in response to recent changes in customer plant demand,” the company added. “As part of this alignment, battery cell production at the Spring Hill, Tennessee, and Warren, Ohio facilities will be temporarily stopped beginning in January 2026. Affected employees may be eligible to continue receiving a significant portion of their regular wages or salaries, as well as benefits.”
The news comes amid declining consumer interest and demand for electric vehicles after the Trump administration rescinded a $7,500 tax credit for buyers.
“We anticipate resuming cell production operations at both sites in mid-2026,” the company continued.
GM said many “Factory ZERO” employees in Detroit may be eligible to receive a supplemental unemployment benefit payment and those affected at its Ultium plants “may be eligible to continue receiving a significant portion of their regular wages or salaries, plus benefits.”
Just a few weeks ago, the company took a $1.6 billion hit for changes related to its electric vehicle plans.
“Following recent U.S. government policy changes, including the termination of certain consumer tax incentives for the purchase of electric vehicles and the easing of the stringency of emissions regulations, we expect the adoption rate of electric vehicles to slow,” GM said in an Oct. 14 presentation.
Ford has also delayed some of its electric vehicle launch plans and sales have plummeted at Tesla, the largest US electric vehicle maker. CEO Elon Musk warned in the company’s latest earnings call that “difficult quarters” lie ahead.
