Photo: Ryan Garza ~ USA TODAY NETWORK
DETROIT, March 10, 2023 ~ In a letter sent to its employees Thursday, General Motors announced that it will offer voluntary buyouts to most of its white-collar employees as part of their goal to cut $2 billion in structural costs over a two-year period.
In the letter, General Motors CEO Mary Barra said that the Voluntary Separation Program (VSP) is designed to accelerate workforce attrition while avoiding involuntary layoffs.
“By permanently bringing down structured costs, we can improve vehicle profitability and remain nimble in an increasingly competitive market,” Barra said in the correspondence.
PODCAST:
March 10, 2023 ~ Keith Naughton, car business reporter for Bloomberg Business, talks on “All Talk with Tom Jordan & Kevin Dietz” about General Motors‘ Voluntary Separation Program, which aims to help the automaker reduce $2 billion in structural costs over two-years without the need for layoffs.
March 10, 2023 ~ Paul Eisenstein, chief of TheDetroitBureau.com, talks to Paul W. about General Motors‘ voluntary employee separation program, and he says that the auto industry has to start cutting costs in order to remain competitive.
(CONTINUED) US employees who elect and are approved for the buyout would receive one month of pay for every year of service up through 12 months, as well as COBRA benefits, prorated performance bonuses, and outplacement services.
The offer extends to US salaried employees who have served five or more years as of June 30, with international workers who have served two or more years also having buyout options. GM has 81,000 salaried workers worldwide, with 35,000 of them employed in Michigan. The company declined to disclose how many buyouts they are targeting to achieve.
Eligible employees have until March 24 to decide, with those who agree to take the offer departing the company on June 30.
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