Monday , June 14 2021

General Motors announces 15% staff cuts and closes 5 floors in 2019



The automotive company General Motors announced the closure of several plants in North America, as well as cuts to its staff by lowering demand for sedan cars.

The cuts include 15% of your wage labor, as well as 25% of its executives, with what they expect to save 6,000 million dollars, reported ABC News.

The three assembly plants that will close will be one in Lordstown, Ohio (east of the USA); another in Detroit-Hamtramck in Michigan (northeast of the USA); and one third in Oshawa, in the province of Ontario (southern Canada). They are also at risk of shutting down a plant on the outskirts of Detroit and another in Baltimore in Maryland (northeast USA).

The models that General Motors will stop producing are the Chevrolet Cruze, the Cadillac CT6 and the Buick LaCrosse, among others.

The reasons

The demand for traditional sedan cars and the steel taxes which imposed the Trump Administration have hit General Motors with an estimated cost of $ 1 billion, the Reuters agency reported.

"We are adjusting the capacity to the realities of the market," said the company's executive president, Mary Barra.

These new measures, which will be discussed with the Trade Union of Automobile Workers next year, are added to the 50,000 negotiated departures That the automotive company offered its employees from North America in October.


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