General Motors cut approximately 1,700 workers across manufacturing facilities in Michigan and Ohio, attributing the reductions to a drop in demand for electric vehicles. The layoffs affected Detroit’s electric vehicle plant and Ohio’s Ultium Cells battery cell plant, with temporary cuts also reported at the Tennessee facility.

The company confirmed 1,200 job losses at the Detroit plant, 550 at the Ohio battery site, and 850 temporary layoffs at the Ohio location. An additional 700 workers were temporarily laid off at Ultium Cells’ Tennessee plant. GM stated the changes followed slower-than-expected EV adoption and shifting regulatory conditions, emphasizing plans to “realign EV capacity” while maintaining its U.S. manufacturing presence.

Battery cell production at Ohio and Tennessee facilities will pause starting January, with operations expected to resume by mid-2026. The company cited facility upgrades as a reason for the suspension.

The decline in EV demand coincided with the expiration of a federal tax incentive for electric vehicles on September 30, which analysts say exacerbated the downturn. J.D. Power projected a 60% drop in EV sales for October, while the U.S. government’s relaxed emissions regulations further pressured the sector.

GM recently recorded a $1.6 billion charge tied to its evolving EV strategy. Its stock fell 0.3% to $69.65 during midday trading on Wednesday, though shares have risen over 35% this year.