GM Layoffs 2020: Automaker To Trim 680 Workers, Eliminate Third Shift Amid Declining Vehicle Demand

General Motors (GM) reportedly has plans to lay off 680 workers from its Spring Hill, Tennessee, assembly plant while also eliminating its third shift.

The layoffs are a result of the coronavirus as GM looks to align its vehicle production with consumer demand, the Detroit Free Press reported. The automaker told the news outlet that the layoffs and shift reductions were the best way to react to the unforeseen market conditions caused by COVID-19.

“This adjustment allows the plant to maintain stable production, protect the value of our brands in any sales environment, and to provide the smallest impact to plant employment going forward,” GM spokeswoman Katy Teer, told the Detroit Free Press in a statement.

GM saw vehicle sales drop as at the height of the coronavirus, despite offering significant incentives to potential car buyers. The auto market came to a virtual halt amid the pandemic as sales for new cars stalled, and it has not rebounded as quickly as GM had hoped after resuming production at the facility, The Nashville Post reported.

The layoffs in Spring Hill account for about 15% of the plant’s workforce, which produces the Cadillac XT5 and XT6 as well as the GMC Arcadia vehicles, the news outlet said. The layoffs at the production plant, which employs about 3,700 workers, will reported be effective on July 31.

GM had shut down its production plants in March in response to the coronavirus pandemic. After coming to an agreement with the United Auto Workers union, the plants reopened in May with increased safety measures to protect UAW workers despite the union’s concern that workers were going back too soon.

General Motors is not alone in laying off workers as massive cuts have moved through the automotive sector after being hit by the coronavirus. Volvo has laid off 4,100 white-collar workers, and BMW has laid off 10,000 contract workers while trimming its workforce by 6,000 in Germany. Supercar maker McLaren also laid off 1,200 workers as it looks to restructure its business and Jaguar Land Rover has slashed 1,000 jobs.

GM stock was trading at $24.40 per share at 3:02 p.m. EDT, down $0.83 from 3.29%.