General Motors Korea reportedly has started making white collar job cuts.
According to WardsAuto.com, the company, currently being restructured with the closing of one assembly plant, will repatriate half of its 36 American executives and cut hundreds of Korean executives and team leaders.
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The report said 50 Korean executives at managing director level or above, excluding Americans, would be reduced to around 32 positions – MD is a middle management role in the country.
Some 20% of hundreds of managers and team leaders would be cut but may revert to lower-paid jobs rather than being dismissed. WardsAuto.com sources estimated the number affected at about 200.
The employees who were potentially affected were notified in a general letter.
The letter reportedly said the staffing actions would be taken immediately. No individual notifications had been made and a specific timeline for the reductions and job changes was unclear.
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By GlobalDataIn a second letter, cited by WardsAuto.com, GM Korea management urged salaried staff and hourly workers to consider a voluntary separation package offered some weeks ago. It expires this Friday.
The separation package provides salaried or hourly workers three years' pay, college tuition assistance for family members and a certificate worth up to KRW10m (US$9,300) that can be used for the purchase of a new Chevrolet.
The report added union officials have complained about highly paid American executives holding jobs that could be handled by Koreans.
Sources told WardsAuto.com they believed GM Korea would announce more specific executive and management changes soon.
