March 21, 2023
GM Offers Employee Buyouts, will take up to $1.5 bln charge
By Staff Writer
March 11, 2023
GM CEO Barra has entered a defining year in her leadership of America’s largest automaker, in August, she will be the longest-standing GM CEO since the legendary Alfred Sloan vacated the job in 1946. Barra has vowed to make 2023 the companies breakout year in its transition to an EV and tech company. By 2025 GM plans on building over 1 million EVs a year and Bank of America Corp has forecast GM could pass Tesla in EV sales.
General Motors continues its restructuring plan toward full electrification with another round of long-term cost cutting measures. After the automaker unexpectedly axed a few hundred jobs last week, CEO Mary Barra told employees via a memo Thursday morning that more job cuts were coming down the pike, but these would be voluntary. Barra wrote, "Taking this step now will avoid the potential for involuntary actions" in the future. The largest U.S. automaker disclosed earlier in the year a $2 billion cost cutting target, including reducing employment through attrition. GM expects to take a pre-tax charge of up to $1.5 billion to cover the costs.
Employees will have until March 24 to take the “separation program” package, according to The Detroit Free Press, which obtained a copy of the memo. GM will offer a voluntary separation program to all U.S. salaried employees with five or more years of service, and to all global executives with two or more years with the auto company. The memo said GM Korea will offer a voluntary separation package to be communicated locally and GM International will continue with "limited business optimization and performance management as required."
The program is not being offered to employees in Canada, Europe, Mexico or China.
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