Decline In Demand For Electric Vehicles Prompts Mass Layoffs At Manufacturer
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Decline In Demand For Electric Vehicles Prompts Mass Layoffs At Manufacturer

General Motors laid off about 1,700 workers across manufacturing sites in Michigan and Ohio, citing a decline in demand for electric vehicles. The layoffs impacted Detroit’s electric vehicle plant and Ohio’s Ultium Cells battery cell plant, CNBC noted. There are also temporary layoffs at Ultium Cells’ Tennessee plant. GM lays off more than 1,700 at sites in Michigan, Ohio, citing EV challenges https://t.co/4C9E1TOfjE — CNBC (@CNBC) October 29, 2025 CNBC shared more: The company confirmed there were around 1,200 layoffs at Detroit’s electric vehicle plant and 550 cuts at Ohio’s Ultium Cells battery cell plant, in addition to 850 temporary layoffs at that site in Ohio. The company also said it would temporarily lay off 700 at Ultium Cells’ Tennessee plant. “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 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.” GM also said battery cell production at its Ohio and Tennessee facilities will be temporarily paused beginning in January. It anticipates resuming operations at both battery cell sites by the middle of 2026 and will use the pause to upgrade its facilities. According to Reuters, the already declining demand for electric vehicles was further impacted by the Trump administration’s removal of a federal tax incentive. The incentive expired on September 30th. J.D. Power forecasted that electric vehicle sales will drop by 60% in October. GM to lay off 1,200 workers building EVs in Detroit as demand slows https://t.co/9mfMGonJv6 — Crain's Detroit Business (@crainsdetroit) October 29, 2025 Reuters noted: A $7,500 tax credit on battery-powered models expired at the end of September, and the U.S. government has further loosened vehicle-emissions regulations, which has weighed on EV sales. The Detroit automaker took a $1.6 billion charge earlier this month related to changes in its EV strategy. GM shares were down 0.3% at $69.65 at midday on Wednesday. The shares have gained more than 35% so far this year.