DETROIT (WWJ) - General Motors announced it will offer voluntary buyouts to a "majority" of its 58,000 U.S. salaried workers as it aims to cut billions in costs over the next two years, according to a letter sent to workers Thursday from CEO Mary Barra.
"As part of our plan to accelerate attrition and achieve $2 billion in cost savings by the end of 2024, General Motors is announcing a Voluntary Separation Program for all U.S. salaried employees with at least five years of service and all global executives with at least two years of service," the Barra wrote his her letter.
"This voluntary program offers eligible employees an opportunity to make a career change or retire earlier," the CEO continued. "We are offering three packages based on level and service to the company. Employees are strongly encouraged to consider the program."
The announcement comes one week after GM suddenly cut several hundred jobs from its 81,000 global workforce to address cost concerns and transition its workforce over to an all-electric automotive company.
U.S. workers who sign up for and get approval for the buyout are eligible for one month pay for every year of service up to 12 months and COBRA health care benefit. They also will receive prorated team performance bonuses and access to outplacement services.
All global employees will receive their base salary, incentives, COBRA and outplacement services.
Qualified employees have until March 24 to accept the package and those that are approved will depart by June 30.Workers in Canada, Europe, Mexico or China were not included in the voluntary separation program.
The last time the Detroit-based automaker offered a buyout program of this size to salaried employees was back in 2019.
