An automobile assembly line at a General Motors plant in Gliwice, Poland.

By Chris Spiker From Daily Voice

About 1,700 General Motors employees will be laid off as the automaker scales back production amid weakening demand for electric vehicles.

GM confirmed the layoffs at facilities in Michigan, Ohio, and Tennessee, The Detroit News reported. The company cited slower EV sales and the Trump administration's de-emphasis on renewable energy as reasons behind the cuts.

About 1,200 workers at GM's Factory Zero Detroit-Hamtramck Assembly Center will lose their jobs as operations consolidate to a single shift. Another 550 positions will be eliminated at the Ultium Cells battery cell plant in Warren, Ohio, while 850 additional workers will face temporary layoffs.

In Tennessee, 700 employees at the Ultium Cells facility in Spring Hill will also be temporarily laid off.

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

The Detroit-Hamtramck plant will shut down until Friday, Nov. 24, and reopen on Monday, Jan. 5, with a single shift. About 2,000 employees will remain, with layoffs determined by seniority.

Battery production at the Ohio and Tennessee Ultium Cells sites will pause on January 5 and continue through at least May. GM said it expects operations to resume by mid-2026 after facility upgrades.

The layoffs come as GM reassesses its electric vehicle plans following the expiration of federal tax credits of up to $7,500 for EV purchases in September. The company saw strong third-quarter EV sales before the incentive ended, but demand has slowed since.

GM joins a growing list of major U.S. employers announcing sweeping job cuts in October.

UPS said Tuesday it would eliminate about 48,000 jobs as part of a broad restructuring effort aimed at improving efficiency and profitability. Amazon confirmed it would lay off around 14,000 employees as it shifts focus to artificial intelligence and automation.

GM's chief financial officer Paul Jacobson previously told CNBC that the company remains confident in the long-term EV market but is focused on cutting production costs.

"We continue to believe that there is a strong future for electric vehicles, and we've got a great portfolio to be competitive, but we do have some structural changes that we need to do to make sure that we lower the cost of producing those vehicles," he said.

The company reported a $1.6 billion hit in the third quarter tied to its all-electric transition.