GM offers buyout to salary workers, cites economic concerns

GM offers buyout to salary workers, cites economic concerns

General Motors is offering buyouts to salaried employees in an effort to accelerate cost-cutting efforts announced in its 2022 earnings report. The company has not announced how many employees it wants to lay off. Its immediate intention is to eliminate $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 Report.

Paul Jacobson, GM’s chief financial officer, said in a call with reporters after the January earnings announcement that the company’s position was strong enough to expect to avoid layoffs. Instead, the company will rely on limiting hiring and will only fill strategically important roles as they become vacant due to natural attrition. So far this attraction has not been enough, it seems.

GM extended the offer to US salaried employees and some global executives. US workers are being offered one month’s pay (capped at one year) for each year of service, along with supplemental health coverage and partial payment 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 TechCrunch reached out to GM for comment; This story will be updated when new information becomes available.

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