GM encouraging white-collar workers to a voluntary exit program to cut costs

Revelations 18:23:’For the merchants were the great men of the earth; for by thy sorceries were all nations deceived.’

Important Takeaways:

  • GM offers buyouts to ‘majority’ of U.S. salaried workers
  • General Motors will offer voluntary buyouts to a “majority” of its U.S. white-collar employees, according to a letter sent to workers Thursday from CEO Mary Barra.
  • GM expects to take a pretax charge of up to $1.5 billion related to the buyouts, according to a public filing Thursday by the company.
  • It comes after the Detroit automaker said last week it would terminate about 500 salaried positions globally.
  • The last time GM offered such a large buyout program was for roughly 18,000 North American salaried employees in 2018-2019.
  • “Employees are strongly encouraged to consider the program,” GM said in an emailed statement to CNBC Thursday. “By permanently bringing down structured costs, we can improve vehicle profitability and remain nimble in an increasingly competitive market.”

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