General Motors shuts plants, cuts workers , Latest Business News - The New Paper

General Motors shuts plants, cuts workers

This article is more than 12 months old

WASHINGTON In a massive restructuring, US car giant General Motors (GM) announced on Monday it would cut 15 per cent of its workforce to save US$6 billion (S$8.3 billion) and adapt to "changing market conditions".

The moves include closing seven plants worldwide as the company focuses on popular trucks and SUVs and increasingly on electric models.

GM will close three North American car assembly plants next year. In addition, it will close some propulsion plants, which produce batteries and transmissions .

"The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future," GM chief executive Mary Barra said in a statement.

The job cuts from the current 180,000 GM workforce will included a 25 per cent reduction in executive-level employees to "streamline decision making".