General Motors has notified approximately 5,500 employees across three of its plants that they will be laid off, at least temporarily. The move comes as the company reassesses its electric vehicle (EV) production following the cancellation of a key tax credit by former U.S. President Donald Trump.

The layoffs include 3,400 workers at the Detroit-based Factory Zero plant, which produces the electric Chevrolet Silverado, GMC Sierra, and Hummer EV. These employees were placed on unpaid leave earlier this summer. General Motors stated that it will recall around 1,200 workers when the plant resumes single-shift operations in January, while the remaining 2,200 will remain on indefinite unpaid leave.

Additionally, the company cut 1,400 jobs at its Ultium battery plant in Warren, Ohio, and 710 positions in Spring Hill, Tennessee. Spokesperson Kevin Kelly noted that about 850 Ohio-based employees could return by May, while 550 face indefinite layoffs. The Tennessee cuts were described as temporary.

These workforce reductions reflect General Motors' broader pullback in EV production amid a sharp market slowdown. EV sales growth had already decelerated before the Trump administration ended the $7,500-per-vehicle consumer tax credit in September.

In the third quarter, General Motors recorded a $1.6 billion charge related to its EV investments and warned of additional expenses in Q4 as it continues evaluating future production needs.