General Motors Co. (NYSE: GM) is scaling back production and laying off more than 2,000 workers across its electric vehicle (EV) and battery operations, reported The Detroit News, as the US market for battery-powered cars shows signs of cooling.
The report said it will lay off about 1,200 employees at its all-electric Factory Zero Detroit-Hamtramck Assembly Center, reducing operations to a single shift.
The move comes as GM temporarily halts production at the facility until November 24, before reopening on January 5, 2026.
A company spokesperson said roughly 2,000 workers will remain at the plant, with job cuts determined by seniority.
Factory Zero has faced repeated production slowdowns in recent months amid softer demand for EVs and what GM described as “an evolving regulatory environment.”
“In response to slower near-term EV adoption and an evolving regulatory environment, General Motors is realigning EV capacity,” the company said in a statement.
“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.”
Impacted employees may be eligible for Supplemental Unemployment Benefits (SUB) pay and other support in accordance with the National GM-UAW Agreement, according to the statement.
Ultium Battery operations also impacted
The job reductions will extend to GM’s joint-venture battery operations under Ultium Cells LLC, which supplies key components for the company’s electric lineup.
The Ultium plant in Warren, Ohio, will see 550 permanent job cuts, while another 850 workers are slated for temporary layoffs.
Additionally, the Ultium facility in Spring Hill, Tennessee, will pause operations starting January 5, temporarily laying off about 700 employees through at least May.
These plants play a critical role in GM’s EV supply chain, producing the lithium-ion battery cells used in its electric vehicles.
The temporary shutdowns and workforce reductions reflect both softer market conditions and adjustments to GM’s long-term production strategy.
EV market challenges and policy shifts weigh on GM
GM’s decision follows a broader slowdown in the US EV market, driven by a mix of economic and policy headwinds.
A key factor has been the expiration of a $7,500 federal tax credit for certain battery-powered models at the end of September, which has weighed on consumer demand.
Looser vehicle emissions regulations have further softened incentives for manufacturers to ramp up EV production, prompting GM to realign capacity to reflect near-term realities.
Earlier this month, GM took a $1.6 billion charge tied to changes in its electric vehicle strategy.
The company also pared back its EV sales outlook for the year as part of a broader reassessment of its electrification timeline.
The automaker, like others in the industry, faces a balancing act—continuing to invest in the future of electric mobility while managing costs and production amid uneven demand.
While GM remains committed to its EV ambitions, the latest cuts underscore the growing pains facing automakers navigating the shift from traditional combustion engines to electrified vehicles in a volatile regulatory and economic landscape.
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