General Motors to reduce 15% of North American employees


The largest US automaker, General Motors Co. (GM), plans to reduce the number of employees in North America by 15%, including reducing the number of managers by 25%, the company said in a press release, Interfax .

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 management and unions fail to reach agreement on increasing the workload of these companies. We are talking about the sedan assembly plant in Detroit, the small car production plant in Ohio and the factory in the Canadian city of Oshawa, near Toronto. Two transmission plants can also be closed – in the suburbs of Detroit and Baltimore.

In addition, the company may close two more factories outside of North America.

These measures will lead to an asset write-down of up to $ 3.8 billion, which will be reflected in the financial statements for the current quarter and the first quarter of next year.

At the same time, the expected increase in GM's free cash flow by the end of 2020 will be $ 6 billion, including a cut in operating costs of $ 4.5 billion, which will allow the company to double its investment in development of electric and autonomous cars within two years.

General Motors shares jumped 5.8% to a high since July. Since the beginning of the year, the company's capitalization decreased by 7.3% to $ 50.7 billion.

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