General Motors has announced its biggest restructuring in over a decade, planning to “unallocate” five plants next year and cut its workforce by 15%. The company also plans to stop making several car models, including the Chevrolet Cruze, the Cadillac CT6, and the Buick LaCrosse.
GM says it will halt production at plants in Warren, Ohio; Detroit; White Marsh, Md.; Warren, Mich., and Oshawa, Ontario in 2019. The company plans to shift more of its resources to electric and autonomous vehicles.
“The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future,” GM Chairman and CEO Mary Barra said in a statement. “We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success.”
The nation’s largest automaker is looking to trim its workforce by 18,000 workers. Last month it offered buyouts to 50,000 North American employees. The company also plans to cut its total executives by 25% to streamline decision making.
GM, which has seen soft sales of several lines, including its pickup trucks, said it expects to take up to a $3.8 billion charge with the cutbacks. Ultimately, it says, the actions will save it $6 billion by the end of 2020.