GM Offers Buyouts to Most US Salaried Workers to Trim Costs
DETROIT (AP) – General Motors is offering buyouts to most of its U.S. salaried workforce and some global executives in an effort to trim costs as it makes the transition to electric vehicles.
The Detroit automaker wouldn’t say how many workers it is targeting, but confirmed that the move is aimed at accelerating attrition to meet a previously announced goal of $2 billion in cost cuts by the end of next year. GM has about 58,000 salaried workers in the U.S.
The company says the offers also are designed to avoid any possible firings at a later date.
Offers will go to white-collar workers with at least five years of service, and global executives with who have been with the company at least two years.
U.S. salaried workers are being offered one month of pay for every year of service, up to 12 months. They’ll also be offered health COBRA health care and part of the bonuses they would receive this year.
Pictured at top: The General Motors logo is displayed outside the General Motors Detroit-Hamtramck Assembly plant on Jan. 27, 2020, in Hamtramck, Mich. (AP Photo | Paul Sancya, File)
Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.