GM offers buyouts to salaried workers, cites economic concerns
General Motors is offering buyouts to salaried workers in an effort to accelerate the cost-cutting efforts announced in its 2022 earnings report. The company has not announced how many employees it wants to shed on the way to its ultimate goal of eliminating $2 billion in operating costs from its balance sheet as it works toward its intended goal of transitioning from internal-combustion to EVs by 2035, AP reports.
In a call with reporters that followed its January earnings announcement, GM Chief Financial Officer Paul Jacobson said the company's position was strong enough that it expected to avoid layoffs and would rely instead on limiting hiring and filling only strategically important roles as they become vacant through natural attrition. That attrition does not appear to have been sufficient thus far.
GM extended the offer to U.S. salaried employees and some global executives. U.S. workers are being offered a month's pay for each year of service (capped at one year) along with supplemental health coverage and a partial payout of bonuses due for 2022. The deadline for employees to accept the package is March 24 and those who take the buyout will have to exit the company by the end of the second quarter (June 30).
Autoblog reached out to GM for comment; this story will be updated if new information becomes available.