General Motors Corp. is offering buyouts to most of its 58,000 U.S. salaried workers in an effort to speed up the downsizing it must carryout to meet its cost-cutting goals. Some executives in the automakers global organization also are targeted for buyout.
The buyout offers were announced in a letter from CEO Mary Barra to employees, and are being presented to salaried workers with at least five years of service, and global executives with at least two years of service.
It’s not known how many positions are targeted for buyout, but recently GM said it would eliminate 500 positions worldwide in its cost-cutting project.
According to Barra’s letter, the buyouts are “designed to accelerate attrition in the U.S.,” and will minimize the number of future “involuntary actions” to separate workers from the company.
U.S. employees who accept the buyout will be given one month’s salary for every year of employment (up to 12 months), COBRA health coverage, pro-rated team performance bonuses, and outplacement services. Non-U.S. employees will receive base salary, incentives, COBRA and outplacement services.
The automotive manufacturer has committed to reduce operating costs by $2 billion by the end of 2024. Of that total, 30-50% of the savings are expected to be achieved in 2023, GM indicated in January.