GM set to begin nearly 1,700 layoffs as Fairfax Plant goes electric

General Motors is saying goodbye to the Chevy Malibu and, with it, nearly 1,700 workers.

Driving the news: The Detroit automaker will initiate both temporary and permanent layoffs at its Fairfax Assembly plant in Kansas, according to a Worker Adjustment and Retraining Notification notice. The plant currently employs about 2,275 workers.

• GM confirmed to Automotive News that the layoffs will happen in two distinct phases.

• The first will begin on Nov. 18. During this time, 686 full-time workers will be temporarily laid off. Another 250 will be permanently let go. 

• The second round of cuts will start Jan. 12, 2025, and will temporarily lay off 759 full-time workers.

The reason? In May, GM announced that it was investing $390 million to re-tool the Fairfax Assembly Plant to accommodate EV production, specifically the Chevy Bolt EV.

What they’re saying: "To facilitate the installation of new tooling, employees will be placed on a temporary layoff until production resumes in mid-2025," said a GM spokesperson.

Flashback: Just last month, GM laid off over 1,000 salaried software and services employees. At the time, GM said the layoffs were necessary to “simplify for speed and excellence”  and “prioritize the investments that will have the greatest impact.”

Why it matters: Temporary layoffs, permanent cuts, and production pauses are direct consequences of GM’s need to scale EV production, raising concerns about impacts on the workforce and the communities that rely on these jobs.

• The end of the Malibu also marks the vanishing of affordable GM sedans. For everyday Americans, who are already grappling with higher interest rates and rising insurance premiums, losing budget-friendly cars like the Malibu will tighten the financial strain. 

• Yet, GM has said the Chevy Bolt EV will be the most affordable new EV on the market in 2025, although the company has not provided pricing so far.

More details: The Malibu, first launched in 1964 and discontinued in 1983, was revived in 1997 and sold millions over the years, even serving as a police vehicle in some generations. Chevy's only remaining gas-powered car is the Corvette after GM discontinued the Camaro last year. Earlier this year, GM introduced a hybrid version of the Corvette called the E-Ray.

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