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GM offers buyouts to ‘majority’ of U.S. salaried workers

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Mary Barra, CEO of General Motors at the NYSE, November 17, 2022.

Source: NYSE

DETROIT – General Motors will offer voluntary buyouts to a “majority” of its U.S. white-collar employees, as it aims to cut $2 billion in structural costs over the next two years, according to a letter sent to workers Thursday from CEO Mary Barra.

The “Voluntary Separation Program,” or VSP, comes after the Detroit automaker said last week it would terminate about 500 salaried positions globally. It will be offered to all employees who have spent five or more years at the company.

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GM expects to take a pre-tax charge of up to $1.5 billion related to the buyouts, according to a public filing Thursday by the company.

“Employees are strongly encouraged to consider the program,” GM said in an emailed statement to CNBC Thursday. “By permanently bringing down structured costs, we can improve vehicle profitability and remain nimble in an increasingly competitive market.”

Eligible employees interested in the program must sign up by March 24. Those who elect to take a voluntary package and are approved will depart by June 30.

At the end of last year, GM employed about 81,000 salaried employees worldwide, according to public filings.

This is developing news. Please check back for additional information.

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