GM To Reportedly Lay Off Employees At Detroit, Tennessee And Ohio Amid EV Demand Slowdown

• GM will lay off 1200 workers in Detroit, and 550 at its Ultium Cells battery cell plant in Ohio, Detroit News reported. 
• The company is also planning temporary layoffs at Ultium Cell plants in Ohio and Tennessee.  
• The company reportedly told the Detroit News that the layoffs are in response to “slower near-term EV adoption and an evolving regulatory environment.”
  
   

General Motors (GM) will reportedly lay off about 1,200 workers at its all-electric plant in Detroit as EV demand in the U.S. loses steam.  

The Detroit News reported on Wednesday that the layoff is part of the company downsizing to a single shift amid the EV slowdown. However, 2,000 employees will stay on at GM's all-electric Factory Zero Detroit-Hamtramck Assembly Center, the report noted, citing company spokesperson Kevin Kelly.

The automaker will also reportedly cut 550 jobs at its Ultium Cells battery cell plant in Ohio. 850 employees are slated for temporary layoff, the report added.

Meanwhile, in Tennessee, the company will temporarily lay off 700 Ultium Cell plant workers, Detroit News said. Ultium Cells is a joint venture between General Motors and LG Energy Solution that mass-produces battery cells for electric vehicles. It supports GM’s North American electric vehicle assembly capacity.

Reasons For The Layoffs

The company reportedly told the Detroit News that the layoffs are in response to “slower near-term EV adoption and an evolving regulatory environment.” The move follows the expiry of a federal tax credit of $7,500 on the purchase of new EVs at the end of September, expected to drag down sales.

Earlier this month, GM CEO Mary Barra said in a letter to shareholders that near-term EV adoption will be lower than planned and the company is reassessing its EV capacity and manufacturing footprint. The company incurred a special charge of $1.6 billion in the third quarter as part of the realignment and expects future charges, she noted.  

“By acting swiftly and decisively to address overcapacity, we expect to reduce EV losses in 2026 and beyond,” she said. The company also announced earlier this month that it is canceling production of its Brightdrop electric vans in Canada citing slow development in the commercial electric van market.

Last week, Bloomberg also reported that the automaker laid off over 200 salaried staff, mainly at its Tech Center in Warren, Michigan. A company spokesperson told Bloomberg that the job cuts are due to changes within its design engineering ranks that resulted in the elimination of computer-aided design staff.

How Did Stocktwits Users React?

GM shares traded 0.3% lower at the time of writing. On Stocktwits, retail sentiment around GM fell from ‘bullish’ to ‘neutral’ territory over the past 24 hours, while message volume fell from ‘high’ to ‘normal’ levels.

GM stock is up by 31% this year and by about 35% over the past 12 months. 

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