GM Slashes Jobs in Ramos Arizpe as EV Demand Softens

General Motors is reconfiguring operations at its Ramos Arizpe manufacturing complex in Coahuila after deciding to consolidate production into a single shift, a move that has resulted in the dismissal of approximately 1,900 workers and reflects weaker-than-expected demand for electric vehicles, particularly in the US market. The adjustment affects both unionized and salaried employees and has prompted state authorities to activate labor reallocation measures to mitigate the regional impact.

General Motors de México confirmed that the plant will transition from two shifts to one in order to align electric vehicle output with current market conditions. The company said the change forms part of a broader operational reconfiguration tied to its electric vehicle strategy. According to the Coahuila state government, the automaker initially notified authorities of 900 job cuts at the plant. Days later, General Motors confirmed to local media that total layoffs would reach about 1,900 workers.

“We will transition operations to a single shift to align electric vehicle production with lower customer demand. We appreciate the contribution our employees have made to GM. The decision was required to maintain efficient operations and remain competitive in the market,” the company said in a statement.

General Motors said all affected workers will receive severance packages in accordance with Mexico’s Federal Labor Law, and confirmed that the workforce reduction applies to both unionized and non-unionized personnel. The company added that the measure is directly linked to the elimination of the second production shift at Ramos Arizpe, which will now operate on a single daily shift.

The Ramos Arizpe complex produces the Chevrolet Blazer EV and Chevrolet Equinox EV, models primarily destined for the US market and central to General Motors’ global electrification strategy. Production data from the Mexican Automotive Industry Association (AMIA) show that output of the Chevrolet Blazer EV fell sharply as demand weakened. Manufacturing of the model declined by 50%, from 33,765 units in 2024 to 16,826 units in 2025.

General Motors attributed the adjustment to softening demand for electric vehicles, particularly following the elimination of consumer incentives in the US market. The automaker has also faced pressure from U.S. trade policy. In 2025, General Motors reported plans to shift production of electric SUVs from Ramos Arizpe to the United States as part of broader corporate commitments tied to U.S. policy and efforts to avoid potential tariffs of up to 25%.

Union representatives warned that the impact of the layoffs could extend beyond the assembly plant. Tereso Medina, leader of the Confederation of Mexican Workers (CTM) in Coahuila, said job losses could multiply across the supply chain. According to Medina, for every job cut at the plant, up to three additional positions could be affected among suppliers.

In response, the Coahuila state government activated a labor support program known as an “employment rotation scheme with companies,” aimed at helping displaced workers secure positions at other firms in the region. State authorities said the program seeks to connect laid-off workers with available vacancies and reduce the broader economic impact of the downsizing.

The Coahuila Ministry of Labor said it is preparing a job fair for late January in the southeastern region of the state. The agency said it is working with business chambers, unions, and municipal governments to consolidate job banks with enough openings to absorb part of the displaced workforce.

The decision comes shortly after a 20 day temporary production stoppage through Dec.19 to Jan. 4 meant for equipment maintenance. Despite being the longest technical shutdown in several years, the union did not see it as a signal of weakened demand or reduced expectations for the company.