General Motors layoff: Company to cut 1,700 jobs, temporarily suspend 5,500 Workers amid EV slowdown

General Motors (GM) has announced a significant workforce reduction in the United States as it scales back electric vehicle (EV) and battery production in response to waning demand.

The automaker confirmed on Wednesday that it will lay off 1,700 employees permanently, including 1,200 workers at its Detroit Factory Zero EV plant and 550 employees at a battery plant in Ohio, according to a Reuters report.

In addition, GM will temporarily temporarily lay off 5,500 workers across three facilities, with 3,400 of them affected at the Detroit Factory Zero plant, which manufactures the Chevrolet Silverado EV, GMC Sierra EV, and Hummer EV.

The company stated that it plans to resume operations at the Detroit plant in January 2026 on a single shift, reinstating around 2,200 employees, while the remaining 1,200 will remain furloughed indefinitely, Bloomberg reported.

The move follows GM’s earlier decision in January to pause battery cell production at two joint-venture battery facilities in Tennessee and Ohio for up to six months, citing a slowdown in consumer demand for electric vehicles.

Starting January, GM will reduce production at its Detroit EV plant from two shifts to one, effectively cutting output by nearly 50%. The factory produces several of the company’s flagship electric pickups and SUVs, including the Chevrolet Silverado, GMC Sierra, EV Escalade IQ, and Hummer SUV.

The layoffs at GM come amid a broader trend of job reductions across major industries. Amazon recently confirmed plans to eliminate 14,000 roles globally as part of its restructuring and increased investment in artificial intelligence (AI) operations.

GM’s decision underscores the challenges facing legacy automakers as they navigate fluctuating EV demand, high production costs, and intensifying competition from established and emerging electric vehicle brands.