General Motors temporarily laid off 1,300 employees at its Factory ZERO electric vehicle facility in Michigan, according to The Detroit News. The automaker began the layoffs on March 16 and expects workers to return April 13.
Company spokesperson Kevin Kelly told The News that the facility will temporarily adjust production to align electric vehicle production with market demand. Kelly added that affected workers could receive subpay and benefits.
The development comes nearly five months after General Motors revealed plans to lay off over 3,400 workers connected to EV and battery production. The Detroit News reported that Factory ZERO would see about 1,200 job cuts as GM looked to reduce operations to a single shift.
Electric vehicle sales dropped after the U.S. government discontinued the $7,500 tax credit for EV buyers. In January, General Motors said it would record approximately $6 billion in charges to align with the policy change and expected consumer demand.
GM and other automakers have increased focus on gas-powered vehicles. However, rising oil and gas prices triggered by the war in Iran have created uncertainty regarding the market for electric and internal-combustion vehicles.
