View Comments
GM to axe 2600 jobs in Europe
GM to axe 2600 jobs in Europe

General Motors said overnight its job cuts in Europe will total 2600 this year, and that it planned to cut production at its troubled Opel unit's Eisenach car plant in Germany in 2013.

To date 2300 people have left the company under the planned 2012 headcount reduction, Steve Girsky, GM vice chairman and European turnaround leader, said in a conference call after the largest US carmaker announced a 12 per cent profit drop for the third quarter.

"We'd rather do them and then announce them," he added, noting most of the departures were either negotiated exits or due to retirement.

"We're also going to reduce our third shift at Eisenach in 2013," Girsky said.

Under pressure from its US parent to drive back to profit, Opel announced in August that about half of the 22,100 people who work at its four plants in Germany would be hit from September by short-time work schemes until the end of the year.

For its troubled Europe operations, GM forecast on Wednesday a 2012 loss of between $US1.5 billion ($A1.45 billion) to $1.8 billion, depending on the level of restructuring under way in the fourth quarter.