General Motors is offering buyouts in an effort to cut $2 billion in costs
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AP
The General Motors logo is displayed outside the General Motors Detroit-Hamtramck Assembly plant, Jan. 27, 2020, in Hamtramck, Mich.
General Motors is offering buyouts to salaried employees in the U.S. and some global executives in order to cut $2 billion in costs over the next two years as the Detroit automaker makes the transition to electric vehicles.
CEO Mary Barry said in a statement Thursday that the "voluntary separation program" will be offered until March 24 and is a step that will help avoid "involuntary actions" later.
"By permanently bringing down structured costs, we can improve vehicle profitability and remain nimble in an increasing competitive market," she said.
The buyouts will be offered to salaried employees with at least five years of time at GM, as well as to global executives with at least two years.
The company has some 58,000 employees on salary in the U.S. It is unknown how many employees GM is targeting for the buyouts.
General Motors initially announced the $2 billion in trims in January, with the company saying it expected between 30% and 50% in savings in 2023.
GM announced that it aims to only be making electric vehicles by 2035.
The transition by car companies, however, is also leading to layoffs.
"In the past year, both Ford and Chrysler parent company Stellantis have announced U.S. layoffs prompted by the shift to electric vehicles For cut 3,000 jobs in August and Stellantis laid off more than 1,000 in February,"
Friday, March 10, 2023 at 8:56 am