On Friday morning, General Motors informed 1,000 employees they were being laid off. The car giant is cutting costs in an effort to make electric vehicles (EVs) more affordable.
Another Wave of Layoffs
According to Reuters, General Motors (GM) has already implemented significant layoffs this year, and last Friday’s announcement adds another 1,000 employees to the list.
These layoffs are part of GM's broader initiative to reduce the high costs associated with electric vehicles, including addressing significant losses in the EV segment. The company aims to cut between $1.8 billion and $3.6 billion in EV-related losses by next year.
Early Friday morning, affected employees were notified via email that their positions had been terminated.
Among those laid off was a former director of competitor analysis, who shared the news in an industry group on social media.
The layoffs impact both hourly and salaried employees, with the majority being permanent staff at GM's Global Technical Center in Warren, Michigan.
This follows earlier layoffs in 2024, including over 1,000 software engineers and related roles in August, and 1,700 production employees in Kansas the following month. Altogether, GM has reduced its workforce by more than 3,700 employees this year.
General Motors' continued layoffs reflect the challenges it faces in scaling its electric vehicle business. Despite substantial investments, EV sales have fallen short of expectations for the automaker, which famously resurrected itself with government support following its bankruptcy in 2009.
In response, GM has announced plans to scale back its full electrification efforts. Instead, the company will shift its focus toward hybrid and plug-in hybrid models, with new offerings expected before 2027.
Ford and Volvo, former partners from 1999 to 2010, are reportedly taking a similar approach, favoring hybrid vehicles over fully electric ones.
Political and Union Dynamics
Adding to GM’s challenges, the political landscape under Donald Trump—who is set to take office as president in January—could create additional uncertainty for the automaker. Trump has been vocal in his criticism of electric cars, calling them a "scam."
In 2023, GM signed an agreement with the United Auto Workers (UAW) union, committing more than $5.7 billion to new EV projects, including facility upgrades in Michigan and Tennessee.
It remains unclear whether the recent layoffs will affect this agreement.
