General Motors Co will slash headcount in its international headquarters in Singapore as part of its efforts to reduce exposure to unprofitable and unpromising markets.
GM International — which oversees markets such as India, Southeast Asia, and South Korea, among — will reduce its staff to about 50 from 180 by the year end, according to a person with knowledge of the matter.
It was two weeks ago that staff at the American auto giant’s branch here (a whole floor at OUE Bayfront in Collyer Quay) were informed of the unfortunate news.
About 90 employees will leave the company by the end of June and 40 by the end of 2017.
Last week, the Detroit-based automaker said it would take a $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.
Since Mary Barra took over as GM’s chief executive in 2014, the company has doubled down on a bet that it can win by being less global but more profitable in an auto industry increasingly dependent on software and services.
The automaker has taken aggressive steps to narrow its focus on China, the highly-profitable North American light truck and sport utility market, Latin America, vehicle financing and transportation services.
In March, the one-time largest automaker in the world also reached a deal with France’s PSA Group to sell its European operations.
Story by Norihiko Shirouzu; Additional reporting by Ankit Ajmera in Bengaluru and Coconuts Singapore; Editing by Anil D’Silva
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