General Motors to offer buyouts to most U.S. salaried workers

Automaker General Motors announced it plans to offer buyouts to most of its 58,000 U.S. salaried workers.

>> Read more trending news

The company did not disclose exactly how many will be part of the plan, The Associated Press reported.

Employees were told via a letter sent from CEO Mary Barra sent Thursday that explained the “Voluntary Separation Program” or VSP, CNBC reported.

Company officials said that the plan will help it meet its cost-cutting goal of $2 billion by the end of next year and will help speed up attrition.

The buyouts will also help prevent possible firings later, the company told the AP.

White-collar workers with at least five years of service to the company as of June 30, and executives outside of the U.S. who have worked for GM for at least two years will be eligible, CNBC reported. They have a deadline to sign up of March 24 and those who are selected will leave the company by June 30.

Those who opt for the buyout will get one month of pay for every year they have worked for GM for up to 12 months, COBRA health care and a partial bonus they would have received this year, the AP reported. They will also receive outplacement services.

“Employees are strongly encouraged to consider the program,” GM told CNBC via email. “By permanently bringing down structured costs, we can improve vehicle profitability and remain nimble in an increasingly competitive market.”

Last week, GM said it was firing about 500 salaried positions worldwide, CNBC reported.

©2023 Cox Media Group