Trying to hit $2 billion in cost savings, General Motors is offering voluntary buyouts to most of its salaried workers, according to multiple reports Thursday.
The majority of the automaker’s salaried employees – GM employs some 58,000 people – are eligible for the buyout. They have to sign up for it before the end of the month.
“As part of our plan to accelerate attrition and achieve $2 billion in cost savings by the end of 2024, General Motors is announcing a Voluntary Separation Program for all U.S. salaried employees with at least five years of service and all global executives with at least two years of service,” spokesperson David Barnas said in a statement, according to the Detroit News. “This voluntary program offers eligible employees an opportunity to make a career change or retire earlier. We are offering three packages based on level and service to the company. Employees are strongly encouraged to consider the program. By permanently bringing down structured costs, we can improve vehicle profitability and remain nimble in an increasingly competitive market.”GM had already announced earlier this year it was cutting some 500 executive-level and salaried jobs. That came after CEO Mary Barra had indicated the automaker was not considering layoffs.
“I do want to be clear that we’re not planning layoffs,” Barra said at the time. “We are limiting our hiring to only the most strategically important roles, and we’ll use attrition to help manage overall headcount.”According to the News, GM CFO Paul Jacobson said the company would focus on reducing “complexity in all of our products and reducing corporate overhead expenses across the board. I do want to be clear, though, we’re not planning layoffs. We are limiting our hiring to only the most strategically important roles and will use attrition to help manage overall headcount.”