• Car companies are struggling to adapt to a rapidly changing electric market.
• Restructuring efforts in some cases include massive cutbacks.
• The cost-cutting measures come as automakers double down on expensive electric cars.

A prolonged transition to electric vehicles is eating away at global car companies, many of which have yet to make a profit from battery-powered vehicles.

Demand for electric cars, especially in the critical US market, has fallen significantly this year as green car dealers become more frugal and practical. This poses a problem for car companies who need mass adoption to deliver profits for these expensive vehicles.

Automotive executives have struggled to adapt to this new electric market, pulling back on some electric production and speeding up the development of more popular hybrid cars. As 2024 draws to a close, many manufacturers are opting for more drastic cost-cutting options as they continue to invest heavily in EV technology.

Major auto companies like Detroit’s GM, Ford and Stellantis have begun cutting jobs as they cut costs and reshape their business models for this next phase of the EV transition.

Here are all car companies with planned cuts or already underway in 2024.

General Motors lays off around 2,000 employees

Detroit auto giant General Motors laid off about 2,000 workers in two rounds of layoffs in August and November. GM cited cost savings and changing market conditions in both cases.

The majority of the 1,000 jobs cut in November were white-collar workers, but the United Auto Workers union reported that about 50 of its members were also affected. According to reports, most of the affected workers were stationed at GM’s global technical center in suburban Detroit, where most design and engineering work takes place.

Ahead of the November job cuts, GM also trimmed another 1,000 salaried positions in software and services, according to reports.

GM aims to cut costs to $2 billion as it adjusts its EV strategy and manages declining sales in the US and China.

Ford will cut 4,000 jobs in Europe due to decline in electric cars

Ford said in November that it plans to cut 4,000 jobs from its European workforce by the end of 2027. Ford said the German and British divisions are likely to be hardest hit as those regions suffer “significant losses”.

In addition to these job cuts, Ford also announced reduced production at a plant in Cologne in the first quarter of 2025.

The cuts at Ford’s European business come as companies in the region grapple with intense competition from Chinese electric car maker BYD.

In the US, Ford also recently announced an extended pause in production of the F-150 Lightning, which will affect the roughly 730 hourly workers at this Metro Detroit plant until 2025.

Volkswagen plans historic cutbacks in Germany

German car giant Volkswagen announced major restructuring measures in October that could include closing factories and cutting tens of thousands of jobs.

The planned cuts, which still face scrutiny from German unions, were announced after VW issued its second profit warning in three months. Volkswagen is facing similar problems to its rivals, with slower electric car sales in China and tougher competition from BYD in Europe.

VW’s planned restructuring will include closing three German factories for the first time in the company’s history, as well as cutting wages by 10% and freezing wages for two years.

Jeep manufacturer Stellantis is cutting jobs in the middle of a 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 launched plans to cut nearly 4,000 factory jobs in the United States. Meanwhile, the company laid off 400 white-collar workers this spring and has offered wide-ranging buyouts to white-collar workers.

The plant cuts have become a lightning rod for the UAW, which accuses Stellantis of violating its contract by removing product commitments from an Illinois plant 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 auto company has filed a lawsuit against the UAW in response to strike authorization votes.

Tesla cuts global workforce by more than 10%

In an April memo obtained by Business Insider, Tesla CEO Elon Musk told employees that the company would eliminate “more than 10%” of its workforce.

The cuts came after Tesla reported declining sales in the first quarter of the year. After initially coping with a slowdown in demand for electric cars, Tesla is finally feeling the squeeze of a more competitive electric 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 production due to poor performance in the critical Chinese and US auto markets.

The move came as Nissan slashed its operating profit for the year by 70%.