GM has denied any link between the layoffs and US trade policy, even as manufacturing is shifted back to American plants.
General Motors said on Thursday that it will cut around 500 positions at its Oshawa, Ontario assembly plant as the operation scales back to two shifts starting February 2. Canada’s largest private-sector union, Unifor, estimates the reduction will ripple through the wider automotive supply chain, potentially affecting as many as 1,200 additional workers.
Speaking to Reuters, GM spokesperson Jennifer Wright said the Oshawa facility will continue producing next-generation full-size internal combustion engine pickup trucks, supported by a new investment totaling CA$280 million (US$207 million).
In a statement, GM described the change as the conclusion of a temporary third shift that had been added to meet surging post-pandemic pickup demand and rebuild inventories.
Wright rejected suggestions that the decision was tied to US tariffs or to ongoing pressure from President Donald Trump toward Canada, as well as to Canada’s recent policy allowing the import of 49,000 Chinese-built electric vehicles at a 6.1% tariff.
However, while GM has framed the third shift as a temporary response to elevated demand, production is in fact being reallocated to GM’s Fort Wayne, Indiana plant, which already builds full-size trucks.
That move drew sharp criticism from Unifor National President Lana Payne. “General Motors has made a clear decision to cave to Donald Trump rather than stand up for its loyal Canadian workforce, making the workers in Oshawa pay for that appeasement with their jobs,” she said.
“It is misguided for General Motors to think it can get away with consistently diminishing their production footprint in Canada and still be the number one seller of vehicles in the Canadian marketplace. GM’s decision is not only short-sighted but fails to recognise the mood of Canadians and Canadian workers.”
Unifor had proposed that GM keep the third shift in place until contract talks in fall 2026, but the automaker declined. Hourly workers impacted by the change will be eligible for GM-funded Supplemental Unemployment Benefits combined with Employment Insurance, bringing total income to 70% of regular weekly pay, along with continued health-care coverage.
Ontario Premier Doug Ford, who recently joined GM in calling for a boycott of Chinese EV imports, labeled the decision “very disappointing” and said the province would support affected workers by promoting opportunities in defence, life sciences, and other industries.
The layoffs were announced in the same week GM reported more than US$12 billion in pre-tax earnings for 2025 and outlined plans to increase shareholder returns through higher dividends and a US$6 billion share repurchase program. GM also noted that GM Canada has invested over CA$2.6 billion in Canadian manufacturing during the past five years.
The Oshawa cuts represent another setback for Ontario’s auto industry. GM’s CAMI Assembly Plant in Ingersoll and Stellantis’ Brampton facility are both currently idle, with no confirmed future vehicle programs.
In October, GM said it would end production of its BrightDrop electric delivery van, which was built in Canada, citing slower-than-expected growth in the commercial EV van market. The move is expected to result in a charge in GM’s fourth-quarter results.
Unifor continues to push for federal automotive policies built around a “sell here, build here” model for manufacturers operating in Canada.
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