EV Market Cools, Prompting Layoffs and Model Cuts
Softening demand for electric vehicles is causing industry turbulence, with SK Battery America cutting nearly 1,000 jobs at its Georgia plant. Meanwhile, multiple automakers are axing or delaying their EV models as U.S. sales slump. The market correction is a sharp reminder of the volatility in the transition to electric mobility.
The much-hyped EV transition is hitting a significant speed bump, with U.S. sales growth slowing dramatically. In 2024, year-over-year growth was about 10%, a steep drop from the 40% seen in 2023. This cooling demand led to total EV sales in 2025 being slightly down by 2% compared to 2024, marking the first year-over-year decline in six years. In response, automakers are hitting the brakes on ambitious all-electric plans and rediscovering hybrids. Ford is delaying its next-generation electric pickup to 2027 and reallocating capital to gasoline and hybrid models. Similarly, General Motors is reintroducing plug-in hybrids to its North American lineup by 2027, a significant pivot from its previous "all-in" on EVs messaging. Mercedes-Benz has also pushed its goal for 50% EV sales from 2025 to 2030. The financial fallout from misjudging the market has been substantial. The global auto industry has faced over $65 billion in losses tied to scaling back EV investments. Ford, for instance, took a $19.5 billion writedown after canceling its all-electric F-150 Lightning pickup, while Stellantis recorded a $26 billion write-off to scrap some electric models and revive its popular V8 engine. These course corrections reflect a new focus on profitability over rapid, and costly, electrification. For the tech workforce, this creates a nuanced landscape. While manufacturing jobs tied to specific EV models are being cut, the long-term demand for engineering talent in software, AI, and robotics remains robust. The slowdown isn't stopping the push toward vehicle automation; instead, it's intensifying the need for specialists who can develop the complex software and embedded systems for the next generation of vehicles, whether they're hybrid or fully electric. The development of autonomous vehicle (AV) technology continues, though timelines for widespread adoption have been extended by one to two years. The industry's workforce is in flux, with a clear shift away from traditional mechanical roles and a heightened demand for skills in AI, machine learning, and data analysis. However, some analysts predict a consolidation in AI investment, with only a few tech-focused automakers likely to maintain an aggressive pace of development through 2029. This market recalibration is also affecting adjacent technologies. Ford is repurposing a Kentucky EV battery plant to produce battery energy storage systems for data centers that power AI, a strategic pivot to a new revenue stream. Meanwhile, the outlook for Vehicle-to-Grid (V2G) technology remains strong, with the market projected to grow significantly by 2030, driven by the increasing number of EVs on the road and the need for grid stability. This suggests that while consumer EV adoption has slowed, the underlying technological shift continues to create opportunities.
