Stock Markets January 29, 2026

GM Reduces Oshawa Shift, Cutting About 500 Jobs as Operations Contract in Canada

Company returns plant to two shifts; union warns broader supply-chain layoffs and accuses GM of moving production to the U.S.

By Caleb Monroe GM
GM Reduces Oshawa Shift, Cutting About 500 Jobs as Operations Contract in Canada
GM

General Motors will reduce operations at its Oshawa, Ontario assembly plant from three shifts to two, a move the company says will eliminate roughly 500 jobs. The rollback follows a temporary increase in production put in place after the pandemic to meet pickup-truck demand and rebuild inventories. The Unifor union warns that as many as 1,200 workers across the auto supply chain may finish their final shifts, and accused GM of shifting production to the United States following U.S. tariff changes.

Key Points

  • GM will revert the Oshawa Assembly Plant to a two-shift schedule, eliminating roughly 500 jobs tied to the temporary third shift.
  • Unifor says up to 1,200 workers across the auto supply chain may finish final shifts and accuses GM of shifting production to the U.S. after a 25% U.S. tariff on Canadian-built vehicles.
  • GM states the shift reduction is unrelated to U.S. tariffs and underlines ongoing investments in Canada, including a C$280 million commitment for future gas-powered truck production and over C$2.6 billion invested in the past five years.

General Motors confirmed on Thursday that it will scale back activity at its Oshawa, Ontario assembly plant, eliminating roughly 500 positions as the facility reverts from a temporary three-shift schedule to a two-shift operation. The company said the change takes effect Sunday and stems from the end of a short-term production boost that had been used to meet surging pickup-truck demand after the pandemic and to replenish low inventories.

A GM Canada spokesperson, Jennifer Wright, said by phone that the third shift was temporary and that the adjustment is not related to the 25% tariff on Canadian-built vehicles imposed by the United States last year. Wright also said the decision is separate from Canada’s updated approach to electric-vehicle imports from China, noting the country has allowed up to 49,000 Chinese-made EVs with a 6.1% tariff.

Union Unifor, however, issued a statement saying the reduction will have wider effects across the supply chain. The union estimated that up to 1,200 workers across the auto supply chain could finish their final shifts on Friday as GM scales back Canadian operations. Unifor additionally said GM rejected a proposal to keep the third shift in place through 2026 and accused the company of moving production to the United States following the tariff change.

Unifor National President Lana Payne criticized GM’s decision in a statement, saying the company had "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."

GM emphasized that Oshawa remains a significant investment for the company. Wright highlighted a planned C$280 million investment to support the next generation of gas-powered trucks, part of more than C$2.6 billion GM says it has invested in Canadian manufacturing over the past five years. The Oshawa plant is notable for being GM’s only North American facility that assembles both light- and heavy-duty Chevrolet Silverado pickups on the same line. Portions of the plant will continue to support aftermarket stamping and sub-assembly work.

Elsewhere in Ontario, GM said its St. Catharines propulsion plant will continue producing next-generation V8 engines for the company’s truck and SUV lineup. The company also said CAMI Assembly remains under assessment for potential future programs.

GM previously announced the cancellation of BrightDrop van production in October, citing slow development in the commercial EV van market. That vehicle was produced in Canada, and GM said it expects to record a charge related to the cancelled program in the fourth quarter.

Currency conversion noted by the company is $1 = 1.3503 Canadian dollars.

Risks

  • Potential for broader supply-chain job losses in the Canadian auto sector as reductions at Oshawa ripple through suppliers and subcontractors - affecting manufacturing and parts sectors.
  • Uncertainty over future production allocations for CAMI Assembly and other Canadian facilities while GM assesses future programs - creating risk for local employment and regional manufacturing activity.
  • Dispute between GM and Unifor over the reasons for the cutback, including accusations about tariff-driven shifts in production, introduces political and trade-policy uncertainty that could affect investor and labor sentiment in the auto sector.

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