- Car companies are scrambling to adjust to a rapidly changing EV market.
- Restructuring efforts include massive job cuts in some cases.
- Cost-cutting measures come as automotive execs double down on expensive EV commitments.
A protracted transition to electric vehicles is taking its toll on global car companies, many of which still have yet to profit from battery-powered vehicles.
Demand for EVs, particularly in the critical US market, has slowed considerably this year as green car shoppers get more frugal and practical. This presents a problem for car companies that need mass adoption to deliver profits for these expensive vehicles.
Automotive executives have been scrambling to adjust to this new EV market, pulling back on some EV production and speeding up the development of more popular hybrid cars. As 2024 draws to a close, many manufacturers opt for more drastic cost-cutting options as they continue investing heavily in EV technology.
Major car companies like Detroit's GM, Ford, and Stellantis have begun slashing jobs as they cut costs and reshape their business models for this next stage of the EV transition.
Here are all car companies with job cuts planned or already underway in 2024.
General Motors lays off about 2,000 employees
Detroit car giant General Motors laid off about 2,000 workers in two rounds of layoffs in August and November. GM cited cost cutting and changing market conditions in both instances.
The majority of the 1,000 jobs cut in November were white-collar, but the United Auto Workers union reported that about 50 of its members were also affected. According to reports, most affected workers were stationed at GM's global technical center in suburban Detroit, where most design and engineering work occurs.
Prior to the November job cuts, GM also trimmed another 1,000 salaried positions in software and services, according to reports.
GM aims to trim $2 billion in costs as it adjusts its EV strategy and manages slowing sales in the US and China.
Ford to cut 4,000 jobs in Europe amid EV slowdown
Ford said in November that it plans to slash 4,000 positions from its European workforce by the end of 2027. Ford said the Germany and UK divisions are likely to be the hardest hit, as these regions suffer "significant losses."
In addition to these job cuts, Ford also announced curtailed production at a factory in Cologne in the first quarter of 2025.
The cuts to Ford's European business come as companies in the region grapple with intense competition from Chinese EV maker BYD.
In the US, Ford also recently announced an extended pause in F-150 Lightning production, which will affect the roughly 730 hourly workers at that Metro Detroit plant until 2025.
Volkswagen plans historic job cuts in Germany
German automotive giant Volkswagen announced big restructuring actions in October, which could include closing factories and cutting tens of thousands of jobs.
The planned cuts, which still face the scrutiny of German unions, were announced after VW issued its second profit warning in three months. Volkswagen faces similar issues to its rivals, with slowing EV sales in China and stiffer competition from BYD in Europe.
VW's planned restructuring would include closing three German factories for the first time in the company's history, as well as cutting salaries by 10% and freezing wages for two years.
Jeep-maker Stellantis slashes jobs amid tough year
Stellantis, the company that owns brands like Chrysler and Jeep, has had a particularly tough year.
As it struggles with oversupply, it has initiated plans to cut nearly 4,000 factory jobs in the US. Meanwhile, the company laid off 400 white-collar workers in the spring and has offered broad buyouts to salaried workers.
The factory cuts have become a lightning rod for the UAW, accusing Stellantis of violating its contract by removing product commitments from an Illinois factory that built the discontinued Jeep Cherokee.
The UAW has threatened to strike over the alleged violation. Stellantis maintains that its actions fall within its contractual right to change plans based on market conditions. The car company has filed a lawsuit against the UAW in reaction to strike authorization votes.
Tesla reduces global workforce by more than 10%
In an April memo obtained by Business Insider, Tesla CEO Elon Musk told his employees that the company would eliminate "more than 10%" of its staff.
The cuts came after Tesla reported declining sales in the first quarter of the year. After initially weathering a slowdown in EV demand, Tesla is finally feeling the pinch of a more competitive EV market in the US.
Nissan plans to cut 9,000 jobs
Japanese car company Nissan announced in November that it would cut 9,000 jobs and reduce manufacturing output amid poor performance in the critical Chinese and US car markets.
The move came as Nissan reduced its operating profit forecast for the year by 70%.