General Motors said Wednesday that it plans to lay off about 1,200 workers at its Detroit-area all-electric factory and cut 550 jobs at its Ultium battery cell facility in Ohio.

GM will also temporarily lay off 850 workers at the Ohio plant and another 700 employees in Tennessee.

“In response to slower near-term EV adoption and an evolving regulatory environment, General Motors is realigning EV capacity,” the company said. “Despite these changes, GM remains committed to our U.S. manufacturing footprint, and we believe our investments and dedication to flexible operations will make GM more resilient and capable of leading through change.”

“Ultium Cells is adjusting production in response to recent changes in customer plant demand,” the company added. “As part of this alignment, battery cell production at the Spring Hill, Tennessee and Warren, Ohio facilities will be temporarily paused beginning January 2026. Impacted employees may be eligible to continue receiving a significant portion of their regular wages or salary, plus benefits.”

The news comes amid declining consumer interest and demand in electric vehicles after the Trump administration rescinded a $7,500 tax credit for buyers.

“We anticipate resuming operations cell production at both sites by mid-2026,” the company continued.

GM said many employees at “Factory ZERO” in Detroit may be eligible for supplemental unemployment benefit pay and those affected at its Ultium plants “may be eligible to continue receiving a significant portion of their regular wages or salary, plus benefits.”

Just weeks ago, the company took a $1.6 billion hit from changes related to its electric vehicle plans.

“Following recent U.S. government policy changes, including the termination of certain consumer tax incentives for EV purchases and the reduction in the stringency of emissions regulations, we expect the adoption rate of EVs to slow,” GM said in a filing on Oct. 14.

Ford has also delayed some of its EV rollout plans, and sales have plunged at Tesla, the biggest EV maker in the United States. CEO Elon Musk warned on the company’s most recent earnings call of “rough quarters” ahead.