General Motors Korea has launched an early retirement programme to restructure its upper pool of managers and higher officials.
A spokesman told the Korea Herald the programme includes pre-payment of two year’s salary, adding that the estimated number of retirees remains unknown. The programme, which started last Friday, will serve to renew the group, he said.
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The spokesman added: “We are giving them (programme candidates) an opportunity to choose. And the programme will be a new chance for the younger staffers below manager position and invigorate the company as a whole.”
The automaker denied a news report that the company, struggling with high sales costs, is seeking to further reduce costs and build up revenue by promoting early retirements.
The company said it saw an 8% increase in sales to 206,173 cars, 31,848 domestic sales and 174,325 exports. Year-on-year domestic and export sales increased 6.5% and 8.3%, respectively.
GM Korea’s overhaul came less than three months after its new chief executive officer took over. Sergio Rocha, former president and managing director of GM Argentina, Uruguay and Paraguay, joined the company in March.
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By GlobalDataThe automaker has not had an early retirement programme for three years. The last application period was in 2009, the same year it welcomed then new CEO, Mike Arcamone, who resigned in January 2012. John Buttermore held the position on an interim basis for about two months, followed by Rocha.
Rocha has been with GM since 1979 and had worked in Korea for two years from 2006 as vice president of product planning and programme management at the former GM Daewoo Auto and Technology.
