GM lays off hundreds of workers amid production adjustments

In the United States, General Motors has announced a temporary layoff of 360 employees at its Factory Zero Detroit-Hamtramck Assembly Center. This decision was confirmed on August 29, 2025, as part of a partial shutdown of production affecting two shifts at the facility. The layoffs will begin on September 2 and are expected to continue until October 6. The automaker stated that the adjustments to production schedules were necessary to align with current market dynamics, ensuring that inventory levels are managed effectively. The affected production lines at Factory Zero are focused on manufacturing the GMC Hummer EV and Cadillac Escalade IQ. These products are indicative of GM's shift towards electric vehicles and the premium SUV market. The move to lay off employees follows a similar action taken in April 2025, when GM temporarily laid off 200 workers for the same reason of adjusting production in response to market conditions. Kevin Kelly, a company spokesperson, emphasized that these layoffs are part of GM's standard process for aligning production with market demands and managing vehicle inventory. Employees affected by this temporary layoff may be eligible for subpay and benefits according to the General Motors-United Auto Workers (UAW) national contract. The layoffs reflect the ongoing adjustments manufacturers are facing in response to fluctuating demand and the need for operational efficiency. The decision to lay off a significant number of workers is a reflection of broader challenges within the automotive industry, particularly as companies transition towards electric vehicles and adjust to shifts in consumer preferences. General Motors’s proactive approach to these challenges aims to stabilize production and maintain competitiveness in a rapidly changing marketplace.