GM staff take voluntary redundancy

Manufacturing News, Source : TheManufacturer.com
Published : 27 Jun 2006 9:23

Around 35,000 workers at US car giant GM have agreed to take voluntary redundancy or early retirement.

The company said it must significantly reduce its workforce and close a number of factories by 2008 to control costs and remain competitive.

GM has been forced to take drastic action in the face of mounting losses, which some experts believe still leave the company vulnerable to potential bankruptcy. The company lost $10.6 billion last year.

The company said it now expects to reach its target for people to leave the business by the end of the year, two years earlier than planned.

"Over the past several months, we have accomplished a great deal in our strategy to reshape GM into a company that is more nimble, more global and built for long-term success," said chief executive Rick Wagoner.

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