General Motors has announced it will cut 327 jobs at the Thai at its Rayong plant in Thailand as it looks to cut costs as financial losses continue.
According to local reports the US carmakers local subsidiary, General Motors Thailand, on Wednesday sent out letters to notify employees of the lay-offs, with both full-time and contract works said to be affected by the redundancies.
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In the letter, the company pointed out that it has continued to incur financial losses in Thailand despite an earlier restructuring launched in 2017, adding that the latest measures were necessary to reduce operating costs.
Affected employees will receive a severance pay based on the length of employment and an additional one month’s salary.
GM Thailand said it remains committed to manufacturing pickup trucks, SUVs and diesel engines at the Rayong plant both for the local market and for export, but need to improve efficiency to stem losses.
The company employs 1,900 people in Thailand, including 1,200 at the Rayong facility which produced just over 60,000 vehicles last year – including 20,000 units for the local market. In the first seven months of the year GM sold 9,221 vehicles in Thailand, down by almost 11% year-on-year. The plant has an annual production capacity of 180,000 units, while the engine plant can produce up to 120,000 units per year.
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