by DETROIT, Mich. — General Motors has announced another round of layoffs, impacting approximately 3,300 employees across manufacturing plants in Michigan, Ohio, and Tennessee, as the automaker adjusts to a cooling electric vehicle (EV) market and shifting federal regulations.
Company officials confirmed the job cuts on Wednesday, citing “slower near-term EV adoption” and an “evolving regulatory environment” as major reasons for the workforce reductions.
Details of the Layoffs
The layoffs include 1,200 workers from GM’s Factory Zero Detroit-Hamtramck Assembly Center, which builds the automaker’s flagship electric vehicles, and 550 employees from the Ultium Cells battery plant in Ohio, according to a report from CNBC.
In addition, 850 more workers in Ohio and 700 in Tennessee will face temporary layoffs, bringing the total number of impacted employees to over 3,300.
GM officials said the company’s Factory Zero will continue operations but at a reduced capacity — just one shift per day, The Detroit News reported.
“In response to slower near-term EV adoption and an evolving regulatory environment, General Motors is realigning EV capacity,” the company said in a prepared statement. “Despite these challenges, 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.”
Workers May Receive Benefits Under Union Contract
According to GM officials, employees affected by the cuts may still qualify for pay and benefits under the National GM–UAW agreement. The union contract outlines provisions for temporary layoffs, severance pay, and retraining assistance to help workers transition to new roles or plants.
The layoffs are the latest sign of turbulence in the electric vehicle industry, as several automakers adjust production goals amid slower consumer demand and reduced federal incentives.
EV Market Faces Regulatory and Economic Headwinds
Industry analysts note that changes in federal tax credits and emission regulations are having a major impact on electric vehicle sales and profitability.
Earlier this year, the $7,500 EV tax credit available to U.S. consumers for purchasing or leasing qualifying electric vehicles expired, significantly reducing incentives to buy new EVs.
In addition, federal regulators rolled back penalties for greenhouse gas emissions, allowing automakers to produce more traditional gas-powered vehicles without facing fines — a move that analysts say boosts short-term profits for internal combustion models but hurts EV production goals.
Political Reactions and Industry Criticism
EV advocate Jameson Dow criticized the policy changes, blaming the Trump administration and congressional Republicans for undermining the U.S. electric vehicle market.
“Eliminating the EV tax credit that was created in 2022 is the primary way the Trump administration and GOP have lessened the demand for EVs and their production in the United States,” Dow said.
He added that as GM scales back its electric vehicle production, foreign automakers — particularly in Asia and Europe — are likely to gain a stronger foothold in the global EV market.
Financial Challenges and Future Outlook
The layoffs follow a difficult financial quarter for General Motors. The company recently reported a $1.6 billion loss, attributing the setback to regulatory changes and market uncertainty surrounding the transition to electric vehicles.
Despite the challenges, GM maintains that it remains committed to the EV transition, even if it means slowing production temporarily. The company plans to continue developing next-generation Ultium batteries and electric trucks and SUVs, though at a more measured pace.
Industry experts say the latest layoffs may only be the beginning if market demand continues to lag. With federal incentives in flux and charging infrastructure still limited in many parts of the country, consumers remain hesitant to fully embrace EVs — a trend that could have long-term implications for the nation’s auto industry.
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