General Motors has temporarily laid off around 1,300 workers at its Factory Zero electric vehicle plant in Michigan for a 30-day period as the automaker adjusts production to meet market demand for EVs, the automaker confirmed to WardsAuto.
The layoffs at GM's former Detroit-Hamtramck Assembly plant converted to produce EVs were effective on March 16 and will extend through April 13, GM spokesperson Kevin Kelly confirmed to WardsAuto, citing Reuters.
“Factory ZERO will temporarily adjust production to align EV production with market demand. Impacted employees will be placed on a temporary layoff and may be eligible for sub-pay and benefits in accordance with the GM-UAW national contract,” Kelly said in an emailed statement to WardsAuto.
Kelly also said that the impacted employees will be placed on a temporary layoff and may be eligible for sub-pay and benefits in accordance with the GM-UAW national labor agreement reached in November 2023.
Last October, GM announced it was cutting roughly 3,400 jobs at its electric vehicle and battery plants in the U.S. on slower than expected EV demand. The automaker confirmed last year it was cutting 1,200 workers at Factory Zero, which were effective Jan. 5.
Over the past several months, GM, Ford Motor Co. and Stellantis have been strategically shifting production towards ICE vehicles after the termination of certain consumer tax incentives last September led to slowing EV sales in the U.S.
In December, Ford announced it was scrapping its previous EV plans after racking up billions of losses over several years due to higher development costs and less than expected demand, including for the F-150 Lightning.”
In a Jan. 8 securities filing, GM recorded $6 billion in EV-related charges, primarily in North America in Q4 2025 amid a realignment of its strategy to produce more profitable full-size internal combustion engine trucks and SUVs. The automaker reported in its January earnings that total EV-related charges for 2025 were $7.9 billion. It resulted in a 55% decline ($3.3 billion) in year over year net income in 2025, from $6 billion in 2024 to $2.7 billion.
In February, Stellantis also posted a net FY 2025 loss of 22.3 billion euros ($26.3 billion) following its multi-billion EV write-down and corresponding pivot back towards more profitable ICE models.
