As history repeats itself, American auto giant General Motors will be slashing 70 percent of its workforce at its regional headquarters in Singapore, in a global initiative to save on costs which is US$100 million (S$139million) a year.
The staffs at General Motors International, who occupy a whole floor at OUE Bayfront in Collyer Quay were notified about this move two weeks ago. Of about 180 employee strength, 130 will be laid off, which is 70 percent of the workforce.
According to insider information, this planned layoff operation will be conducted in two separate batches – one, at the end of next month and second, towards the end of December, Straits Times reports.
As severance pay, General Motors will be paying one month for each year of service, plus an ex-gratia payment of another month. Employees across the organization are impacted by this change, including director of sales and business development Cheong Chee Sing and President Stefan Jacoby.
See in past: GM to axe 500 jobs in restructuring
In a statement issued by the GM last week, the company said it’s running its international markets with an enterprise approach and making decisions that is best for the global business. This restructuring at GM Singapore comes just after the company re-opened its regional headquarters some three years back.
Mary Barra, chief executive and chairman of GM believes this latest downsizing is to establish the automaker as “more focused and disciplined company”. Further the American automaker will stop selling Chevrolet vehicles in India, South Africa and East Africa. GM is also selling its businesses, dealership and plant in Africa to Isuzu.
As an outcome of this move, the company expects to realise annual savings of US$100-million; plans to take a charge of about US$500 million in the second quarter of this year. The charge will be treated as special and excluded from the company’s results adjusted for Ebit (earnings before interest and tax). About US$200 million of the special charge will be cash expenses.
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Feature image credit: asiabizz.com
