GM offers buyouts to ‘majority’ of U.S. salaried workers
GM CEO Mary Barra talks with media prior to the start of the 2017 General Motors Company Annual Meeting of Stockholders Tuesday, June 6, 2017 at GM Global Headquarters in Detroit, Michigan.
Photo by John F. Martin for GM
DETROIT – General Motors will offer voluntary buyouts to a “majority” of its U.S. white-collar employees, as it aims to cut $2 billion in structural costs over the next two years, according to a letter sent to workers Thursday from CEO Mary Barra.
The “Voluntary Separation Program,” or VSP, will be offered to all U.S. salaried employees who have spent five or more years at the company. Outside of the U.S., the automaker also is offering buyouts to executives with at least two years of time or more.
GM expects to take a pre-tax charge of up to $1.5 billion related to the buyouts, according to a public filing Thursday by the company.
“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.”
Eligible employees interested in the program must sign up by March 24. Those who elect to take a voluntary package and are approved will depart by June 30.
At the end of last year, GM employed about 81,000 salaried employees worldwide, according to public filings.
The buyouts come after the Detroit automaker said last week it would terminate about 500 salaried positions globally.
This is developing news. Please check back for additional information.
College golfer withdraws from NCAA championships after tee goes through foot
Transfer news LIVE: Chelsea appoint Mauricio Pochettino, Guardiola ‘calls’ Neymar, Liverpool keen on Milinkovic-Savic
Bitcoin Price and Ethereum Prediction: BTC and ETH Poised for 50% Retracement; Brief Market Analysis
Inmates hope to befriend Theranos founder Elizabeth Holmes ahead of her arrival at Texas prison
Bay Ridge community salutes thousands who gave their lives at 156-year-old Memorial Day parade
Earth Will Receive an ‘Alien’ Transmission From Mars This Week
This Queer Running Society Wants to Make the Sport More Inclusive
American women’s secret war in Afghanistan
Maria Sharapova Shares the Workouts That Help Her Feel Energized as a New Mom
What’s Up With Mouth Taping as a Sleep Hack?
NH police pursuit of motorcyclist ends in serious crash with officer
Expert Says King Charles and Other Royals ‘Could Solve’ Prince Harry’s Security Issue but They Won’t: ‘Let’s Get Real’
U.S. Billionaire’s Golden Eagle Soars Nearly 34% In Hong Kong On Privatization Offer
The Strange Non-Musical Similarity Between Bob Dylan and John Lennon
Body Language Expert Says King Charles Makes an ‘Exception’ to the No-PDA Rule With 1 Royal Woman — And It’s Not Camilla
News21 hours ago
GOP Senate Candidates Who Want You to Forget About Their Past Trump Criticism
Lifestyle14 hours ago
Martin Scorsese Meets Pope Francis, Announces Film About Jesus – Report
Travel14 hours ago
China’s Travel & Tourism sector forecast to see swift post-pandemic recovery
News14 hours ago
How to Make Meetings Shorter (for Real)
Auto14 hours ago
2024 Kia Sorento Facelift Caught On Camera Hiding New Headlights
News13 hours ago
Requesting alternative holidays
Tech14 hours ago
Gizmodo Monday Puzzle: Can You Outsmart a Mouse?
Tech13 hours ago
Ex-Google Safety Lead: News Orgs Using AI Have to Own the Hallucinations