GM Is Cutting More Than 1,200 Jobs. Blame EVs.

Auto makers are preparing for weaker electric-vehicle sales. (Scott Olson/Getty Images)

Key Points

• General Motors will lay off 1,200 workers at its electric-vehicle plant near Detroit and hundreds more at battery facilities.
• The layoffs are due to slower near-term EV adoption and an evolving regulatory environment, leading to a single shift at the plant.
• GM recently took $1.6 billion in write-offs, reflecting expectations of lower demand and profitability for its EV business.

General Motors said Wednesday it will lay off 1,200 workers at its electric-vehicle plant near Detroit, along with hundreds of other employees.

The plant will be going to a single shift, reflecting lower demand for EVs. Hundreds more employees at battery facilities will also be laid off, the company said. It’s a big sign that the EV slowdown is denting the bottom line.

“In response to slower near-term EV adoption and an evolving regulatory environment, General Motors is realigning EV capacity,” the company said in an emailed statement. “Despite these changes, GM remains committed to our U.S. manufacturing footprint, and we believe our investments and dedication to flexible operations will make GM more resilient and capable of leading through change.”

Affected employees might be eligible for some pay and benefits in accordance with the national labor agreement.

Shares dropped 1% to $69.14 on Wednesday, while the S&P 500 finished flat and the Dow Jones Industrial Average dropped 0.2%.

Overall EV sales hit a record in September, accounting for 12% of all new U.S. car sales. Buyers were rushing to beat the expiration of the $7,500 EV purchase tax credit, which was eliminated in President Donald Trump’s spending bill passed on July 4.

Now, auto makers are preparing for weaker sales. GM recently took $1.6 billion in write-offs, reflecting expectations of lower demand and profitability for its EV business.

The company’s EV troubles generally haven’t hurt shares, though. That makes sense: Investors already know that traditional auto makers don’t make good money selling EVs. Gasoline-powered cars generate the bulk of their profits.

Coming into Wednesday trading, GM stock was up 31% year to date, including a whopping 15% rise after the company reported better-than-expected third-quarter profits on Oct. 21. Tariff-induced cost increases haven’t been as bad as feared, and new car demand has held up better than investors expected at the start of 2025.

Write to Al Root at allen.root@dowjones.com