GM laying off nearly 1,700 workers in Kansas due to EV shift
Job Losses at Kansas Plant
General Motors (GM) announced layoffs of 1,695 workers at its Fairfax Assembly plant in Kansas, effective in two phases. The first phase, commencing on November 18, will temporarily furlough 686 full-time employees and terminate 250 temporary workers. The second phase, beginning on January 12, 2023, will further lay off 759 full-time workers on a temporary basis.
Future Production Plans
GM’s decision stems from its earlier announcement in May that it would pause production of the Cadillac XT4 in Kansas after January 2025. The company intends to resume production of both the Bolt EV and XT4 on the same assembly line in late 2025. “To facilitate the installation of new tooling,” a GM spokesperson stated, “employees will be placed on a temporary layoff until production resumes in mid-2025.”
Recent Job Cuts
GM’s Kansas layoffs follow recent job cuts in other areas of the company. In August, GM laid off over 1,000 salaried employees globally in its software and service units. These layoffs are part of GM’s broader restructuring efforts as it transitions to electric vehicle production.
Investment in Fairfax Plant
Despite the layoffs, GM has committed to investing approximately $390 million in the Fairfax Assembly Plant to support the production of the new Chevrolet Bolt EV. This investment reflects the company’s belief in the future of electric vehicle manufacturing in the United States.
Economic Impact
The layoffs at the Fairfax Assembly plant will undoubtedly have a negative impact on the local economy. The plant has been a major employer in the area for decades, and losing over 1,600 jobs will be a significant blow. However, GM’s investment in the plant and its commitment to electric vehicle production offer hope for the future.
Job Training and Support
GM has stated that it will provide severance packages and job training support to laid-off employees. “Our focus is always on minimizing the impact to our workforce during these challenging times,” said a GM spokesperson. “We will work closely with union representatives and community leaders to support our employees during this transition.”