As GM negotiates to invest nearly $3 billion in Brazil, here in the U.S., it'll reportedly begin laying off employees on Monday. The Detroit News reports that the U.S. automaker will begin laying off about 4,250 salaried employees. It cites a source saying that GM will largely complete its ongoing drive to cut some 8,000 salaried and contract jobs this month.
GM's plans to restructure its global operations include idling five North American plants this year.
Over the weekend, GM said it plans to invest in its Brazilian plants in Sao Caetano do Sul and Sao Jose dos Campos.
Autotrader executive analyst, Michelle Krebs, said, "When GM got out of a lot of markets, they stayed in Brazil because they have a dominant position there. And so, it's looking at making an investment, but clearly, it wants some tax incentives in return."
The announcement comes after GM had warned its Brazilian employees that "sacrifices" would be necessary to make the company profitable again. A local paper reported that GM lost more than $270 million dollars last year in Brazil.