SINGAPORE: General Motors (GM) International on Thursday (May 25) said it is supporting employees affected by a restructuring of its regional office in Singapore.
The US-based automaker’s international headquarters in Singapore oversees markets in India, Southeast Asia and South Korea, among others.
Earlier on Thursday, it was announced that GM would be restructuring its operations at GM International to “drive stronger financial performance and focus its capital and resources on business opportunities expected to deliver higher returns”. A person with knowledge on the matter told Reuters that the office will reduce its staff numbers to about 50 from 180 by year's end.
About 90 employees will leave the company by the end of June and 40 by the end of 2017, Reuters reported.
“We are providing separation payments in excess of the statutory requirement, as well as career transition assistance. We believe this will assist our highly skilled and valued employees to move to the next phase of their professional lives,” said a GM spokesperson.
The spokesperson added that they have notified the Singapore Government and explained that the decision was “driven by GM’s global priorities and was not related to any factors within Singapore”.
Last week, the GM said it would take a US$500 million charge in the second quarter to restructure operations in India, Africa and Singapore. The company plans to stop selling Chevrolet brand vehicles in India by the end of the year and will produce vehicles only for export.
Responding to media queries from Channel NewsAsia, Singapore’s Taskforce for Responsible Retrenchment and Employment Facilitation said it was aware of GM’s retrenchment exercise. The taskforce added that it is in contact with GM International to “extend assistance to affected employees”.
“For workers affected during retrenchments, NTUC's Employment and Employability Institute (e2i) and the Workforce Singapore will offer employment assistance services such as career coaching, employability workshops, job fairs and job matching, through the Adapt and Grow initiative,” said the taskforce.