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Fortune
Fortune
Paolo Confino

GM to 'rip off the Band Aid and significantly cut costs' by laying off 1,300 workers amid its transition to EVs

Employee at a General Motors facility (Credit: The Washington Post)

General Motors plans to lay off 1,300 workers after deciding to end production of two of its models. The Orion Assembly plant in Orion Township, Mich., will bear the brunt of the cuts, with 945 workers facing layoffs as the facility winds down production of the Chevrolet Bolt and will be retooled to manufacture electric trucks. Another 369 employees at the Lansing Grand River Assembly plant, in Lansing, Mich., will also lose their job as production of the Camaro, a muscle car synonymous with Detroit's golden age, sunsets. GM had previously announced it would end production of the Camaro in January 2024, before deciding to end production about a month earlier in December. 

The news comes as GM, like many automakers, grapples with the seismic shift toward electric vehicles. GM CEO Mary Barra’s plans to turn around the company hinges on a successful transition to electric vehicle manufacturing, which she reiterated during a press event this month. The company’s strategy, however, has been hampered by stagnant demand for electric vehicles and rising costs to produce them. In fact, the Orion plant, which is being refurbished for electric trucks, won’t be operational until 2025, as the company tries to figure out how to make them at a lower cost. 

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