General Motors (GM) is planning a massive restructuring exercise which may see the company cutting up about 10,000 jobs across its European unit, Opel.
The company is yet to announce the official job cut figure, and how exactly the restructuring will go about. With the restructuring, the automaker expects reduction of production about between 20 and 25%, saving the company up to 3.3 billion euros. There is a possibility that one or more manufacturing plants to be closed entirely.
The workers union did not respond too well, and is planning to take the matter to the street in protest. The news seems to be too much to take, especially, after the union agreed to forgo bonuses for year 2011 operation.
Currently, Opel employs over 50,000 employees across Europe. Half of them are based in German.
Opel is a German automaker founded in the 19th century and was acquired by GM in 1929. Of late, its future has been thrown into uncertainty after GM announcing its plan to sell the subsidiary to a Canadian part maker, Magna when the former was threaten with financial problems and bankruptcy. Magna acquisition supposedly comes with a clause that no jobs in German will be cut, an offer the unions have been pushing GM to take.
However, last week GM made a reversal and decided to retain control of Opel, and is now invoking the wrath of the Germans.