General Motors temporarily laid off 1,300 workers at its Factory Zero plant in Detroit, as the automaker continues to grapple with weaker EV demand following recent US policy changes.
The company is undergoing a broader restructuring of its electric vehicle strategy, which has resulted in a $7.6 billion in impairments and thousands of job cuts across North America.
The temporary layoffs were confirmed to The Detroit News on Monday.
Workers were dismissed on March 16 and are expected to return on April 13, according to a representative.
“Factory Zero will temporarily adjust production to align EV production with market demand,” spokesperson Kevin Kelly said in a statement.
For that, “impacted employees will be placed on a temporary layoff and may be eligible for subpay and benefits in accordance with the GM-UAW national contract,” Kelly added.
EV Strategy Review
In October — weeks after the halt of the federal $7,500 credit on EV purchases — General Motors warned that financial results would be impacted by a $1.6 billion loss from its EV strategy change.
Another $6 billion was added in January.
Of the $7.6 billion total cost, $4.6 billion will be paid in cash, largely for contract cancellations and supplier settlements.
Earlier this month, CFO Paul Jacobson said the team is “working very aggressively to put this behind us,” adding that the goal is to resolve all related payments by the end of the second quarter.
Late last year, Chief Executive Officer Mary Barra acknowledged the difficulty of planning long-term EV investments when government policy swings dramatically between administrations.
Despite production adjustments in the past few months, Board Member Jon McNeill said last week that the company is well positioned when it comes to both EV demand shifts and the most recent oil price hike.
McNeill, who briefly served as President of Tesla, drew a sharp distinction between GM and its competitors — Ford Motor Company and Stellantis — when it comes to electric vehicles.
“General Motors is in a pretty good position, because they designed EVs from the ground up that are pretty compelling cars,” he stated.
All three Detroit automakers reported multibillion-dollar losses last year as they scaled back EV-related projects.
Ford said in December it expected a $19.5 billion impairment, while Stellantis announced €22.2 billion ($25.6 billion) in charges last month.
Previous Layoffs
Last October, GM announced a round of job cuts affecting about 1,200 workers as the company moved to single-shift production at Factory Zero.
GM said at the time that the permanent layoffs came “in response to slower near-term EV adoption and an evolving regulatory environment.”
A spokesperson noted that about 2,000 employees would be kept at the Detroit plant, which was closed from November 24 to January 5.
The Detroit News also reported at the time that battery manufacturer Ultium Cells — a joint venture between General Motors and LG Energy Solution — would cut 550 jobs and furlough 850 workers in Ohio and 700 workers in Tennessee.
Canadian Production
GM has been scaling back overseas production due to high US tariffs, which have led to increased costs and layoffs across its Canadian plants.
At its third-quarter earnings call, the automaker announced it was shutting down production of the BrightDrop electric delivery van, which was assembled at the CAMI Assembly plant in Canada.
Earlier this year, the company also confirmed it would go forward with a layoff of 750 workers at its Oshawa plant.
The procedure had been delayed until January after high demand for the light-duty Chevrolet Silverado pick-up.
Beyond the 750 workers in Oshawa, another 1,500 people were expected to be affected throughout the supply chain.
After General Motors and Stellantis cancelled or reduced their Canadian production plans, the government cut their annual remission quotas — by 24.2% for GM and 50% for Stellantis.
As high tariffs continue to strain relations between the two countries, Canada has been moving to diversify its partnerships beyond US automakers.
Ottawa signed a deal with China earlier this year to allow the entry of 49,000 Chinese EVs annually at a reduced tariff of 6.1%.
GM CEO Mary Barra has criticized the agreement, calling it a risk to “protecting jobs and national security” on the continent.
“I can’t explain why the decision was made in Canada,” Barra said during an internal meeting with employees, according to The Wall Street Journal. “It becomes a very slippery slope.”
In 2025, General Motors captured 21.2% of Canada’s EV market, registering over 25,000 vehicles.
