General Motors to cut further jobs and close more plants

General Motors to cut further jobs and close more plants

General Motors is going through tough times. Japanese companies are already becoming a darling for the consumers in the United States. Their bonds have been given the Junk Status by the market. Moreover, the latest news in is that the company is destined to close more plants and worse, cut more jobs.

The move would mean that the company would be eliminating around 25,000 jobs in the country in the next 3 years and would be closing down some plants to get back its business on track. The chairperson of the company Rick Wagoner announced these decisions while speaking to the shareholders at GM’s 97th annual shareholder meeting in Delaware.

These latest job cuts should help the company cut costs by around USD 2.5 billion. The company has strength of around 111,000 hourly workers in the United States and has 321,000 employees worldwide.

The company is struggling in their domestic market with their market share down to just 25.4% from around 27% a year ago. The company would now be focusing on increasing spending on developing new products and increasing the quality standards of existing products. GM is also looking forward to cutting costs in their auto division.