GM Cuts Factory Zero to One Shift: 1,145 Detroit Workers Lose Jobs Before Holidays
Layoffs Announced Days Before Christmas
General Motors announced in mid-December that 1,145 workers at its Factory Zero assembly plant in Detroit would be permanently laid off effective January 5, 2026. The timing placed the announcement just days before the plant's scheduled holiday shutdown from December 24 through January 4, according to World Socialist Web Site reporting. Workers faced the prospect of losing both employment and healthcare coverage during the holiday period.
From Two Shifts to One
The layoffs reduce Factory Zero from two shifts to a single shift, cutting the plant's workforce approximately in half. UAW Local 22 President James Cotton told FOX 2 Detroit that the union lost roughly half its membership at the facility with these cuts. Factory Zero manufactures the GMC Hummer EV, Chevrolet Silverado EV, GMC Sierra EV, and Cadillac Escalade IQ.
The plant, which opened in 1985 and currently employs approximately 4,000 workers, was promoted by GM as the "flagship of an electric vehicle future" when it reopened less than five years ago, according to CBS Detroit coverage.
Year of Overtime, Then Layoffs
The job cuts followed a difficult year for Factory Zero workers. Throughout much of 2024, employees worked between 72 and 80 hours per week before experiencing irregular temporary layoffs. Both shifts were placed on temporary layoff until November 24, 2025, before GM announced the permanent elimination of more than 1,000 positions.
"I work here at Factory Zero and it's disappointing that we do so much hard work to keep up with quality and demanding numbers just to end up not knowing how we're going to pay our bills," one worker wrote to the World Socialist Web Site.
Battery Plants Also Hit
The Factory Zero cuts are part of broader reductions across GM's electric vehicle operations. The company announced it would pause battery cell production at its Ultium Cells facilities in Warren, Ohio, and Spring Hill, Tennessee, beginning in January 2026. WardsAuto reported that approximately 850 workers in Ohio and 700 in Tennessee would be temporarily laid off, with production expected to resume by mid-2026.
An additional 550 workers face indefinite layoff at the Ohio facility when it returns to single-shift operations.
Company Cites EV Demand Slowdown
GM attributed the cuts to "slower near-term EV adoption and an evolving regulatory environment." The automaker took a $1.6 billion impairment charge in the third quarter of 2025 related to revising its electric vehicle strategy.
The layoffs come as GM continues to report substantial profits. In October, the company raised its projected 2025 net income to between $12 billion and $13 billion, following record profits of $14.9 billion in 2024. GM stock has risen approximately 55 percent over the past year.
Supplier Impact
The Factory Zero cuts have cascaded through supplier facilities in the Detroit area. Additional WARN Act notices were filed for 143 permanent layoffs at Avancez in Hazel Park, 133 layoffs at five Detroit locations of Autokinition, and 192 layoffs at the Yanfeng production facility in Romulus.
Dana Thermal Products permanently closed its Auburn Hills, Michigan, plant that produced EV battery cooling plates, eliminating approximately 200 jobs.
Ford Also Affected
GM is not alone in scaling back electric vehicle production. Hundreds of workers at Ford's Rouge Electric Vehicle Center in Dearborn, Michigan, remain on layoff. Company executives are reportedly considering whether to discontinue the F-150 Lightning electric pickup truck entirely.
Workers Seek Alternatives
A young worker who was laid off from Factory Zero several months earlier said he had heard through informal channels that GM's Lake Orion plant — closed for retooling for two years — might resume production in the third quarter of 2026. However, no official announcements have been made.
UAW Local 22 Vice President Henry Fleming told FOX 2: "It's a hurting feeling because you work hard for these companies, and corporations and good wages and, all of a sudden, it just gets swept from you. You don't know what the day tomorrow is going to bring."
