General Motors will cut U.S. electric vehicle and battery production, leading to 1,200 job cuts at its Detroit EV plant. Production will be reduced by 50%, with a shift to one shift starting in January due to slower EV adoption and regulatory changes.

The automaker will halt battery cell production at its U.S. joint-venture battery plants for six months, resulting in temporary layoffs of about 1,550 workers. GM also plans to lay off 550 workers indefinitely at its Ohio plant, jointly operated with LG Energy Solution.

Automakers in the U.S. are anticipating a drop in consumer demand for EVs after the $7,500 federal tax credit for EV buyers expired. GM is among those canceling production of certain electric models due to slower development in the commercial EV van market.

United Auto Workers union President Shawn Fain criticized GM for the job cuts, despite the company raising expected annual profits to $13 billion. GM CEO Mary Barra acknowledged lower EV adoption rates without federal incentives, expecting to reduce EV losses in 2026 and beyond.

GM had planned to transition to all EV sales by 2035 but is now retrenching due to changing regulations and market conditions. The company is making adjustments to production and workforce in response to the evolving landscape of EV adoption and regulations.

Read more at Yahoo Finance: GM to cut EV, battery production and 1,200 jobs at Detroit plant