Saturday , May 21 2022

General Motors will reduce 15% of workers in North America



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The largest automaker of the United States General Motors Co. (GM) intends to reduce the number of employees in North America by 15%, including reducing the number of 25% management, the company said in a press release, reported by Interface.

Given the current number of GM employees in the region, layoffs will affect more than 10,000 people.

The company also plans to close four plants in the United States and one in Canada by the end of 2019 if managers and trade unions fail to agree an increase in the workload of these enterprises. We are talking about the plant for a sedans assembly in Detroit, the plant for the production of small cars in Ohio and the plant in the Canadian city of Oshawa near Toronto. Two transmission factories can also be closed – in the owners of Detroit and Baltimore.

In addition, the company can close two other plants outside North America.

These measures will result in the removal of one-off assets in the amount up to $ 3.8 billion, which will be reflected in the financial statements for the current quarter and for the first quarter of next year.

At the same time, the expected increase in the GM cash flow by the end of 2020 will be $ 6 billion, including operating costs of $ 4.5 billion. This will allow the company to double its investment in the development of electric cars and self-drive within two years.

General Motors shares dropped in a price of 5.8%, up to a maximum since July. Since the beginning of the year, capitalization of the company has decreased by 7.3%, to $ 50.7 billion.

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