trending Market Intelligence /marketintelligence/en/news-insights/trending/fapbt8fxdtgbhekeqnhxra2 content esgSubNav
In This List

Report: GM Korea to cut managerial staff

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Volume of Investment Research Reports on Inflation Increased in Q4 2021

Blog

Price wars in India: Disney+ Hotstar vs. Amazon Prime Video vs. Netflix

Blog

Using ESG Analysis to Support a Sustainable Future


Report: GM Korea to cut managerial staff

The South Korean unit of General Motors Co. intends to reduce its executive staff, Reuters said, citing details from a letter to employees.

In the letter, GM Korea said it will cut the number of employees at the level of managing director or higher by 35% and slash the number of team leaders and directors by 20%, Reuters reported.

A spokesman for GM Korea confirmed the plan, adding that the unit had approximately 150 executives including hundreds of team leaders and 100 directors, according to Reuters.

The move is the latest by the automaker in its attempt turn around the struggling business. The unit employs approximately 16,000 workers, and in a separate letter, the company asked staff to "actively consider" leaving voluntarily under a previously announced program. That offer expires Friday.

In addition, the Korean unit intends to reduce the number of "international service personnel" — executives sent from GM headquarters and other overseas units — by 45%. The company also said that executive promotions were being frozen and that changes will commence immediately and will be fully effective by the third quarter of 2018.

Labor leaders have been angered by the GM's plan to close its plant in Gunsan and the disparity in the separation packages being offered for domestic workers and international executives.

During talks with the union on Wednesday, GM proposed a freeze on base wages, the elimination of bonuses, and the suspension of such benefits as college tuition for the children of employees. The negotiating session ended after less than two hours, Reuters noted.

Union officials reportedly told Reuters that approximately 200 subcontractors at the Gunsan plant have been asked to leave by the end of March. GM workers staged a protest Feb. 28, displaying signs that called for revoking the closure of the plant. The United Auto Workers joined the protest, according to the report.