GM Announces Job Cuts Across Michigan, Tennessee and Ohio

General Motors is scaling back its electric vehicle operations, announcing plans to eliminate more than 2,400 jobs across multiple states as it adjusts to slowing EV demand and shifting government policy. The automaker said the decision reflects “a realignment of EV capacity” in response to “slower near-term adoption” and new regulatory developments.

GM Restructures Amid Changing EV Market

The company confirmed it will cut roughly 1,200 positions at its Detroit-area all-electric “Factory ZERO” and another 550 at its Ultium battery cell facility in Warren, Ohio. Additionally, GM plans temporary layoffs affecting 850 employees in Ohio and about 700 in Spring Hill, Tennessee.

A statement from the automaker emphasized that GM remains committed to its domestic manufacturing base. “We believe our investments and dedication to flexible operations will make GM more resilient and capable of leading through change,” the company said.

According to GM’s investor filings, production at both the Spring Hill and Warren Ultium plants will be paused starting in January 2026, with operations expected to resume by mid-2026. Employees impacted by the pause may continue receiving partial wages and benefits through company support programs.

Policy Shifts and Declining Demand

The layoffs come as the electric vehicle industry faces a cooling market, accelerated by the Trump administration’s rollback of the $7,500 federal tax credit for EV buyers. Without those incentives, consumer interest in electric cars has dipped nationwide.

Earlier this month, GM disclosed a financial charge exceeding $1.6 billion tied to adjustments in its EV strategy. The company’s statement cited “policy changes and a reduction in the stringency of emissions regulations” as major factors behind slower adoption rates.

Rival automakers are also feeling the squeeze. Ford has delayed several key EV projects to conserve capital, while Tesla’s quarterly results revealed falling sales and reduced margins. CEO Elon Musk warned investors of “rough quarters ahead,” reflecting the broader uncertainty in the electric vehicle market.

GM said workers affected by the cuts may be eligible for supplemental unemployment benefits, and many will have opportunities to transition into other roles within the company as it continues to adjust production volumes.

Despite these challenges, the automaker reaffirmed its long-term focus on electrification, stating that “GM remains committed to building a sustainable EV future, even as we adapt to changing market conditions.”