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Layoffs at GM Semiconductors Kokomo, Indiana plant
The American automaker will layoff about 160 employees at its Kokomo, Indiana facility following a decision to stop manufacturing semiconductors at the plant by mid year 2017.
According to the Kokomo Tribune, the company plans to lay off about 100 hourly and 60 salaried workers. Which means that the total headcount at the facility will decrease from more than 755, to around 600 – about 20% of the workforce.
The company made the decision to reduce its workforce at the semiconductor unit simply because the volumes at the plant has stopped making profit, reports the Komoko Tribune citing Kevin Nadrowski, a plant communications manager for GM.
As the plant sits, the equipment will not allow the company to compete globally, and it might not be an idea to invest in new equipment as competition is so steep and demand is met by existing supplier, the report continues.
