General Motors Company(NYSE:GM) Korea is planning to reduce its office workers of 7,000 through a voluntary retirement scheme, Reuters reported on Tuesday citing sources.
The company's spokesman Park Hae-ho also confirmed the plan and said that it was aimed at improving organisation efficiency. This is the first time that the company has made such a redundancy plan applicable for all workers, compared to an earlier plan which had been only for senior workers.
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While Park did not give a specific target for reduction he said that the company's 10,000 production workers would not be affected.
The South Korean market is shrinking due to the global economic slowdown and as heavy household debt cuts demand. GM Korea is not the only carmaker to cut jobs in response. The South Korean unit of French carmaker Renault SA this year cut 800 workers, or about 15 percent of its workforce, using a similar programme, Reuters said.
GM's South Korean market share has fallen below 10 percent since 2008. The carmaker had a 9.4 percent share from January to October this year in the domestic car market while Hyundai and Kia controlled around 80 percent, it added.
Meanwhile hedge fund Tiger Global has picked up a 9.9 percent stake in daily deals site Groupon Inc(NASDAQ:GRPN). Tiger Global said in a regulatory filing that it owns 65 million shares of the Chicago company, which faces slowing revenue growth and accounting investigations.
Shares of the company rallied with the broader markets and closed up 4.2 percent in yesterday’s session, then gained 15 percent more in today’s session at $3.55. The stock is still down 65% from its $10 IPO price.