-
GM employees have until March 24 to accept buyout offers.
-
Clerks with at least five years of experience qualify for the acquisitions.
-
The move is part of a plan to cut $2 billion in costs by the end of next year.
General Motors is implementing a sweeping buyout program covering the majority of its salaried workforce as the automaker continues to cut costs to fund an electric future.
Any salaried GM employee with at least five years of experience or an executive with at least two years of experience at the auto company qualifies for the voluntary buyout program, sent to employees in a letter Thursday.
The acquisition program is part of GM’s plan to “accelerate attrition and achieve $2 billion in cost savings by the end of 2024,” spokeswoman Maria Raynal said in an emailed statement.
Packages vary according to job title and length of employment. All U.S. wage earners with at least five years of experience are entitled to one month’s pay for each year of service up to 12 months, as well as a prorated performance bonus and outplacement services, the spokesman said.
Eligible employees have until March 24 to accept the buyout offer and, once approved, will leave the company by June 30.
“By permanently reducing structured costs, we can improve vehicle profitability and remain nimble in an increasingly competitive market,” said Raynal.
GM last rationalized its workforce in 2019, cutting about 15% of its North American workforce as the company initiated plans to close more plants. Earlier this year, some experts wondered whether GM and other auto companies would buck a larger trend of layoffs hitting the tech sector because of these actions.
But as EV rollouts in the company stand, according to a report this week from The Wall Street Journal, it appears that more cuts are needed.
Other car companies have announced job cuts this year, including Rivian and Ford. But GM’s is the biggest yet, affecting a majority of its 81,000 white-collar workers around the world.
Read the original article on Business Insider