General Motors announced on Wednesday it will lay off approximately 1,200 workers at its all-electric vehicle (EV) factory in Detroit and cut another 550 jobs at its Ultium battery cell facility in Ohio.
Additional temporary layoffs will affect 850 employees at the Ohio plant and 700 in Tennessee.
"In response to slower near-term EV adoption and an evolving regulatory environment, General Motors is realigning EV capacity," the company said.
"Despite these changes, GM remains committed to our US manufacturing footprint, and we believe our investments and dedication to flexible operations will make GM more resilient and capable of leading through change."
The decision comes as consumer interest in EVs declines following the federal government's removal of the $7,500 tax credit for electric vehicle buyers.
According to TechCrunch, GM has faced a $1.6 billion setback in its EV plans due to policy shifts and changes in regulatory requirements.
Ultium Cells, GM's battery division, added, "As part of this alignment, battery cell production at the Spring Hill, Tennessee, and Warren, Ohio facilities will be temporarily paused beginning January 2026. Impacted employees may be eligible to continue receiving a significant portion of their regular wages or salary, plus benefits."
The company expects to resume production at both sites by mid-2026.
BREAKING
— Lee Golden (@LeeGolden6) October 29, 2025
GM to cut 1,200 jobs at Detroit EV plant, and 1,200 more at Tennessee & Ohio battery plants, due to slowing U.S. EV demand — Detroit News
The demand is going down because people realize these EV's aren't reliable & expensive to maintain! pic.twitter.com/ywLkfQUrXj
GM Cuts Jobs as US EV Market Slows Down
Workers at Detroit's "Factory ZERO" may be eligible for supplemental unemployment benefits, while Ultium plant employees may continue receiving wages and benefits during the temporary shutdown, NBC News reported.
The layoffs highlight a broader slowdown in the US EV market. "Following recent US 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 stated in an October 14 filing.
Other major automakers are experiencing similar challenges. Ford has delayed parts of its EV rollout, and Tesla has seen a sharp decline in sales.
Elon Musk warned of "rough quarters" ahead on Tesla's most recent earnings call.
The Detroit EV factory layoffs come just weeks after GM announced cuts to some of its white-collar workforce and ended its BrightDrop commercial electric van program.
Despite the cuts, GM emphasized that it remains committed to its US manufacturing operations and long-term EV goals.
"Our investments and flexible operations will help GM navigate these changes and remain a leader in the transition to electric vehicles," the company said.
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