General Motors Co.'s South Korean unit is looking to ax 30% of its workforce but continue steady production if the government accepts the company's $2.8 billion restructuring proposal, Reuters reported, citing a document it reviewed.
GM Korea plans to cut the number of its employees by 5,000 to 11,000 from about 16,000, the document reportedly showed. This move would affect facilities in addition to the Gunsan plant, which is set to shut down by the end of May. The Gunsan factory operates with 2,000 workers, according to Reuters. The unit had said it is weighing the fate of its three other plants in South Korea.
The document reportedly showed part of GM's plan over 10 years included creating 1,100 new jobs, building new sports utility vehicle models and a compact car engine in South Korea.
GM plans to add its next-generation Trax small SUV and a brand-new compact SUV to its Korean production lines in 2020 and 2022, respectively, building 200,000 of each and keeping its overall production in Korea near 500,000 per year over the next 10 years, the document said.
Both GM Korea and a spokeswoman for the trade ministry declined to comment, Reuters said.
A Feb. 28 report by Reuters said the South Korean unit also plans to reduce its executive staff as part of the automaker's effort to turn around the struggling business. Apart from the $2.8 billion proposal, General Motors also proposed a debt for equity swap valued at $2.2 billion for its South Korean business.
