General Motors Announces Layoff of 1,300 Workers at 2 Michigan Plants

General Motors has confirmed plans to cut more than 1,300 jobs across two auto plants in Michigan, effective January 1, 2024.

According to filings submitted to state regulators on Thursday, the automaker will lay off 945 workers at its Lake Orion facility and 369 at its Lansing Grand River assembly/stamping plant.

GM's Electric Pickup Delay Sparks Orion Job Cuts

GM Reclaims Spot As Top Automaker In U.S., As It Overtakes Toyota

(Photo : Brandon Bell/Getty Images)
AUSTIN, TEXAS - JANUARY 05: GMC pickup trucks are displayed for sale on a lot at a General Motors dealership on January 05, 2023 in Austin, Texas. General Motors has reclaimed its title as the top-selling carmaker in the U.S. after outselling Toyota in 2022. GM reported that the company sold approximately 2.7 million vehicles last year, while Toyota came in just over 2.1 million vehicles sold.

It has been reported that GM's decision to delay the production of electric pickup trucks until 2025 has resulted in job cuts. In a recent development, it has come to light that the affected facilities encompass General Motors' Orion Assembly, which is renowned for its production of the Chevrolet Bolt EV and Bolt EUV crossover, as well as the Lansing Grand River Assembly.

The Orion plant, known for its production of electric vehicles, is set to undergo changes that will impact a staggering 945 workers. Initially, the plant had ambitious plans to manufacture more electric vehicles, including the highly anticipated Chevrolet Silverado EV and GMC Sierra EV. In a recent disclosure made by GM in October, the production delay has cast a shadow of uncertainty over the fate of workers, leaving the plant idle.

GM clarified that the delay was not a consequence of the recent United Auto Workers' strike, the longest in the US auto industry in 25 years. In a written statement, the company assured that job opportunities would be available for all impacted team members, following the provisions of the UAW-GM National Agreement.

At the Orion plant, General Motors (GM) has revealed its strategy to provide alternative opportunities for affected employees in Michigan. The company's plan includes offering positions at Factory ZERO, located in Detroit-Hamtramck. In accordance with GM policy, salaried employees at Orion Assembly will also be evaluated for various internal opportunities, according to CBS News.

GM Job Cuts and Ford's F-150 Lightning Layoffs

The job cuts at GM reflect a broader trend of uncertainty facing the electric vehicle market. Edmunds.com reports increasing discounts on EVs as they linger on dealer lots longer than traditional gas vehicles, signaling a decline in demand in a market that was expected to surge in recent years.

Ford, along with other prominent automakers, has found itself compelled to implement cost-cutting measures. Ford has made the decision to lay off 700 employees who were directly involved in the production of the highly anticipated F-150 Lightning.

This particular vehicle holds the distinction of being the electric edition of Ford's immensely popular best-selling vehicle, the F-150. In a significant development, the Rouge Electric Vehicle Center in Dearborn has announced that layoffs will be implemented across three shifts.

General Motors (GM) has made the decision to cut over 1,300 jobs. This development has only added to the challenges already facing the industry, prompting concerns about the future growth trajectory of electric vehicles. CNN has made contact with both General Motors (GM) and the United Auto Workers (UAW) union, seeking additional comments regarding the current situation, East Bay Times reported.