General Motors (GM) is reducing electric vehicle operations across key U.S. sites, announcing plans to lay off about 1,200 workers at its Factory ZERO plant near Detroit, along with 550 permanent job cuts and 1,550 temporary layoffs at Ultium battery facilities in Ohio and Tennessee.
GM said it is "realigning EV capacity" due to a slowdown in near-term electric vehicle adoption and changing U.S. regulations. Battery cell production in Warren, Ohio, and Spring Hill, Tennessee, will be paused beginning January 2026, with operations expected to resume by mid-2026.
The company noted that many affected employees may continue to receive a significant portion of their wages and benefits. GM emphasized it remains committed to its U.S. manufacturing footprint and expects flexible operations to help it navigate industry shifts.
The cuts follow GM's recent $1.6 billion charge linked to changes in federal EV incentives, including the termination of the $7,500 consumer tax credit. Industrywide EV softness has led competitors like Ford to delay rollouts, while Tesla warned of "rough quarters" ahead amid declining demand.
Thursday, GM closed at $68.67, or 0.67% lower, and currently trades after hours unchanged on the NYSE.
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