GM's EV Shift: A Bump in the Road

Major Job Cuts and Plant Adjustments

General Motors is making significant changes to its electric vehicle (EV) strategy, including cutting approximately 5,500 jobs. Of these, 1,750 employees will face indefinite layoffs. This move is part of a broader effort to adapt to slower EV sales and new regulatory requirements.

Factory Zero Plant Adjustments

The Factory Zero plant in Detroit will transition from operating two shifts to just one. As a result, out of the 3,400 workers furloughed over the summer, only 2,200 will return. The remaining 1,200 employees will be on indefinite layoff. Those returning will resume work on January 5, 2026.

Closure of Two Battery Plants

GM will shut down two battery plants:

• Warren, Ohio
• Spring Hill, Tennessee

These closures will occur between January 5 and mid-2026. In Spring Hill, around 700 workers will be temporarily laid off. In Warren, 850 workers will face temporary layoffs, while 550 will be on indefinite layoff.

Adapting to Market Realities

The company attributes these changes to lower-than-expected EV demand and the need to comply with new regulations. While GM remains committed to EVs, it is adopting a more cautious approach. The company is also using this period to upgrade battery plants for greater flexibility.

A Familiar Challenge

This is not GM's first adjustment to its EV strategy. Earlier this month, the company reported a $1.6 billion charge as it slows down its EV plans. The transition to electric vehicles appears to be more challenging than initially anticipated.