GM lays off over 1,700 workers indefinitely as EV demand slows

General Motors (GM) said Wednesday it is laying off 1,750 workers indefinitely in the coming months and temporarily cutting 1,670 others as it scales back electric vehicle production. 

The Detroit-based automaker said it is scaling back production plans and realigning electric vehicle capacity at Factory Zero, its flagship electric vehicle assembly plant in Michigan, in response to the slower near-term electic vehicle adoption and an evolving regulatory environment. 

In a regulatory filing from earlier this month, the automaker indicated it would incur a $1.6 billion loss for the third quarter of 2025 that is connected to a plan to scale back or adjust its electric vehicle production and factories. 

“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,” the automaker said in a statement to FOX Business.  

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Production at Factory Zero, which has two shifts and manufactures the GMC Hummer EV, Chevrolet Silverado EV, GMC Sierra EV and Cadillac Escalade IQ, will remain paused through Nov. 24. The company will then convert production to one shift. When both shifts return at the end of November, the company will determine which of the highest ranking senior workers will make up the one shift, meaning 1,200 employees that don’t make the cut will be laid off indefinitely, according to GM, which notified employees Wednesday.

GM is simultaneously adjusting production at its two Ultium Cells battery plants — in Warren, Ohio, and Spring Hill, Tennessee — to align with changing demand for electric vehicles.

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Ultium Cells LLC, a joint venture between General Motors and LG Energy Solution, was created to manufacture lithium-ion battery cells for GM’s electric vehicles. They power GM’s Ultium platform, which is the company’s proprietary EV architecture used in models like the Chevrolet Silverado EV, GMC Hummer EV and Cadillac Escalade IQ.

As part of the company’s realignment plan, it said battery cell production at the Spring Hill, Tennessee, and Warren, Ohio, factories will be temporarily paused beginning January 2026. The company anticipates operations to resume by mid-2026.

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“During the temporary pause, Ultium Cells plans to make upgrades to both facilities to provide greater flexibility. Ultium Cells will continue to evaluate and adapt production plans based on evolving market needs,” GM said in a statement.

During the pause, 850 employees in Ohio will be temporarily laid off. When the plant goes back online, it will also scale down to one shift. About 550 employees will be cut indefinitely when that occurs. 

Its Spring Hill location, which is already operating with one shift, will temporarily lay off 710 employees when it goes idle. Those employees will be brought back when it resumes production. 

GM said affected employees may be eligible to continue receiving a significant portion of their regular wages or salary, plus benefits, during the pause in production.

Employees will also get holiday pay.