GM to shutter three North American plants, cut 15% of workforce
BILL PUGLIANO (GETTY/AFP/File)
In a massive restructuring, auto giant General Motors announced Monday it would cut 15 percent of its workforce to save $6 billion and adapt to "changing market conditions."
The moves include shuttering three North American auto assembly plants next year: the Oshawa plan in Ontario, Canada; Hamtramck in Detroit, Michigan and Lordstown in Warren, Ohio.
Canadian Prime Minister Justin Trudeau said on Monday following the company's announcement that he was 'very disappointed with the news.
In addition, it will close propulsion plants in Baltimore, Maryland and Warren, Michigan, and two more plants outside of North America.
GM has been increasing its focus on highly popular trucks and SUVs and "now intends to prioritize future vehicle investments in its next-generation battery-electric architectures."
"The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future," GM CEO Mary Barra said in a statement.
"We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success."
The job cuts from the 180,000 GM workers will included a 25 percent reduction in executive-level employees to "streamline decision making." The Canadian plant employs about 3,000 workers.
GM already had announced plans to cease operations at its Gunsan, Korea plant.
Trading in GM shares was halted just before the announcement. Once it restarted 20 minutes later, prices jumped and continued rising, showing a gain of nearly six percent to $37.95.
US President Donald Trump on Monday said he is "not happy" with General Motors' decision.
Trump said at the White House that he wants GM, which announced plans to shut down seven plants, to "get back in there soon. We have a lot of pressure on them."
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