Opel Plans to Fire 500 Middle-Management Executives image

Opel’s new caretaker chief, Thomas Sedran, said that he will respect the commitments made to employees and unions as part of a turnaround plan.

“We’re honest and honorable business people and will abide by all existing contracts and agreements. Nothing is going to change in that respect,” said Thomas Sedran.

This turnaround plan also means that 500 middle-management executives, among which directors and divisional heads, all earning six-digit annual salaries, will be laid off. They would be offered attractive redundancy packages to leave the company voluntarily. There were no comments regarding this issue from Opel, who since 2009 laid off 8,000 employees from the total of 48,000.

On Tuesday, July 17th, the company named Sedran interim chief until a permanent successor can be found for Karl-Friedrich Stracke, who unexpectedly quit his job last week. Opel’s restructuring plan to get the company back on the track, was approved in June by the supervisory board.

In the past 10 years GM lost billions of dollars in the European market, deciding to sell Opel, but then it pulled back its offer when it could not find a suitable buyer. Sedran is the fourth new chief in the last three years.