General Motors (GM) laid off more than 3,300 electric vehicle (EV) workers, according to reports. Some layoffs are permanent, while others are temporary, as the automaker cited a slowdown in the EV market.
GM will temporarily or permanently reduce its workforce by over 3,300 employees at plants in Michigan, Ohio and Tennessee, the Wall Street Journal reports. About 1,700 workers are permanently losing their jobs, and another 1,500 are temporarily laid off, with a potential return around mid-2026 when production is expected to ramp back up.
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According to CNBC, GM is conducting 1,200 permanent layoffs at its Detroit EV and battery plant. Additionally, there are 550 permanent layoffs and 850 temporary layoffs in Ohio, along with 700 temporary layoffs in Tennessee.
Company response and market factors
“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, as reported by CNBC. “Despite these changes, 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.”
Consumer demand for EVs has declined partly because the Trump administration ended a $7,500 tax credit that previously made electric vehicles more affordable. Without this incentive, fewer consumers are interested in purchasing EVs.
Financial impact and union reaction
GM reported a $1.6 billion loss in the third quarter due to EV plans not playing out as expected. The company is now re-evaluating how many EVs it can produce and is adjusting its manufacturing strategy accordingly.
Despite these setbacks, GM raised its annual net profit forecast to between $12 billion and $13 billion, up from a previous estimate of $10 billion to $12.5 billion. Following the news, GM’s stock price rose nearly 15%, signaling a positive response from investors, The Detroit News reports.
“Last week, GM raised its expected annual profits to $13 billion dollars,” United Auto Workers President Shawn Fain said in a statement. “This week, they announce layoffs. So let’s be clear: GM is a profitable company, our members remain ready to work, and the UAW will continue to fight for more investment in both ICE and EV production at GM and beyond.”
UAW representatives said the union is actively working with GM to ensure that affected members have job options and can return to work as soon as possible.
