GM offers salaried employee buyouts, will take up to $1.5B charge

General Motors on Thursday said it was offering buyouts for most of its salaried employees and global executives and expects to take a pre-tax charge of up to $1.5 billion to cover the costs.

The announcement comes as layoffs by US companies in the past two months touch their highest since 2009, with the tech sector accounting for more than a third of the over 180,000 job cuts announced.

The largest US automaker, helmed by CEO Mary Barra, in January disclosed a $2 billion cost cut target, including reducing employment through attrition.

Under the terms of the staff reduction plan, all US salaried employees with at least five years of service and all global executives with at least two years of service will be offered lump sum payments and other compensation to exit the company, GM said.

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


General Motors CEO Mary Barra
In January, GM disclosed a $2 billion cost cut target, including reducing employment through attrition. Above, CEO Mary Barra.
REUTERS

It expects to take the bulk of the charge in the first half of 2023.

GM, whose shares fell about 2%, had 58,000 salaried employees at the end of 2022.

Eligible employees interested in the voluntary program must sign up by March 24 and those agreeing will leave GM by June 30.

The buyouts are separate from job cuts the company made last month.

A GM executive in February said the company was cutting hundreds of executive-level and salaried jobs. Peer Ford Motor said it planned to eliminate 3,800 product development and administration jobs in Europe in the next three years.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TheDailyCheck is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected] The content will be deleted within 24 hours.