US-based carmaker General Motors will reduce jobs in South Korea as it plans to drop the Chevrolet brand in Europe, the biggest export market for Korean-made cars.
Detroit/Soul - General Motors, the world's second-biggest carmaker, announced on Tuesday it will reduce job positions at its operations in South Korea as a part of its plans to withdraw the Chevrolet brand from Europe, which is the main export market for Korean-made cars.
The company will implement a voluntary retirement scheme for about 6,000 workers by March next year, marking its fourth round of job cuts since 2009, according to GM spokesman Park Hae-ho, citing the company's Korea CEO Sergio Rocha.
The 6,000 office workers include research and design staff, amounting to about 2,200, while the company did not specify the targeted number of job lay-offs. Last year, the company's voluntary retirement program resulted in around 250 job reductions.
"This is part of our ongoing efforts to enhance operating efficiency," Park commented, while Rocha added that the company does not aim to reduce production jobs.
The Detroit-based automaker announced earlier this month that it will drop the Chevrolet brand in Europe by the end of 2015. As a result, General Motors's South Korean production is expected to decline by about 20% as it supplies most Chevrolets sold in the region. The company said it would focus on its Opel and Vauxhall lines in an effort to return to profitability in Europe.
Nine out of ten Chevrolets sold in Europe are built in Korea. Last year, GM South Korea exported 28% of its overall shipment of 654,000 cars to Europe.
Source:Wbonline.com
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