General Motors has announced its largest restructuring in a decade, planning to close five plants next year and cut 15% of its workforce. The company also plans to stop production of several models, including the Chevrolet Cruze, the Cadillac CT6, and the Buick LaCrosse.
“We recognize the need to be at the forefront of changing market conditions and customer preferences to position our company in great success.”
The largest automobile producer in the United States is looking to cut out of its workforce of 18,000 workers .
Last month, it offered to acquire 50,000 employees in North America . The company also plans to cut 25% of its executives to expedite decision-making.
GM, has seen soft sales of various lines, including its pickups, said it expects to absorb $ 3.8 trillion with the cuts.
Recently, stocks will save $ 6 trillion by the end of 2020 .
GM said it will stop production of the plants in Warren, Ohio; Detroit; White Marsh; Warren, Michigan, and Oshawa, Ontario in 201 9.
The company plans to move more of its resources towards electric and autonomous vehicles.
“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,” said GM President Mary Barrera.