General Motors Cuts 1,750 Jobs as Electric Vehicle Demand Slows

General Motors is cutting roughly 1,750 jobs across its electric vehicle and battery plants in Michigan and Ohio. The automaker confirmed on Wednesday that it must slow down production because fewer people are buying electric cars than expected. The cuts will hit hourly workers at the company’s Detroit manufacturing hub and a battery plant in Lordstown, Ohio, starting in early 2026.

Key Facts

• Impact: 1,200 workers at Detroit’s Factory Zero and 550 at Ultium Cells in Ohio.
• Reason: Expiry of federal tax credits and slowing sales growth.
• Severance: Eligible workers may receive wages and benefits under union deals.
• Source: CNBC, The Detroit News

Factory Zero Hits the Brakes

The largest hit lands at Factory Zero, GM’s main electric vehicle plant in Detroit. About 1,200 workers there will lose their jobs as the plant drops from two shifts down to just one. The company says it needs to match its output to what customers are actually buying. This facility builds high-profile trucks like the electric Silverado and Hummer, but sales have not kept up with the company’s aggressive targets.

Battery Plant Cuts in Ohio

The cuts also extend to the supply chain. Ultium Cells, a joint venture between GM and LG Energy Solution, will permanently lay off 550 workers at its Lordstown, Ohio plant. On top of those permanent cuts, another 850 workers at the same location face temporary layoffs. The company stated that it must pause some lines to update them and manage inventory.

Union leaders are fighting the decision. United Auto Workers (UAW) President Shawn Fain blasted the move, pointing out that GM recently raised its annual profit forecast to $13 billion. He argued that the company is choosing to cut jobs despite being profitable.

Tax Credits and Market Shifts

GM executives blame the cuts on a mix of changing rules and market reality. A major factor is the recent end of the $7,500 federal tax credit for electric vehicles. Without that discount, cars are more expensive for regular buyers, which has cooled demand. The company is now trying to fix its costs to handle a market that is growing much slower than predicted.