Automaker cites slowdown in sales of electric vehicles and reviews expansion plans in the United States
General Motors announced on Wednesday (October 29, 2025) the layoff of around 1,700 workers at factories in Michigan and Ohio, in the United States, due to the drop in demand for electric vehicles. The company also said it will temporarily suspend battery cell production at two of its units.
According to the automaker, the layoffs include 1,200 employees at the electric vehicle factory in Detroit, 550 cuts at the Ultium Cells plant in Ohio and 850 temporary layoffs at the same location. The company will also carry out 700 temporary layoffs at the Ultium Cells unit in Tennessee. The information is from .
In a statement, GM said the adjustment is a response to slower adoption of EVs and changes in the regulatory environment. “Despite these changes, GM remains committed to its U.S. manufacturing presence and believes its investments and flexible operations will make it more resilient.”these.
The automaker said it will pause battery production in Ohio and Tennessee starting in January, with plans to resume by mid-2026. During the shutdown, the facilities will undergo modernization.
The layoffs came a week after GM announced it was cutting more than 200 engineers at its technology campus in Detroit as part of a restructuring plan.
The electric sector faces uncertainty since the end of federal incentives of up to US$7,500 for the purchase of these vehicles. The benefit, which ended in September, had boosted sales in the 3rd quarter, but the market now projects a slowdown in demand.
The automaker reiterated that it continues to see “a promising future” for electric vehicles, but needs to reduce costs and adjust the production structure to maintain competitiveness.
