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GM offers to buy ‘majority’ of US salaried workers

Detroit – general motors The company aims to cut $2 billion in structural costs over the next two years, according to a letter sent by its CEO to workers on Thursday, to the “majority” of the 58,000 U.S. white-collar workers. Proposing a voluntary acquisition. Mary Barra.

The “Voluntary Separation Program” or VSP is available to all U.S. office workers who have been with the company for 5 years or more as of June 30th. time at the company.

GM will incur pre-tax charges of up to $1.5 billion in connection with the acquisition, one of the sources said. Published application Thursday. The majority of the claims, all in cash, are expected to occur in the first half of the year, according to the company.

In a Thursday letter, Barra said the program was “designed to accelerate wear and tear in the United States” and help the company potentially avoid “involuntary actions” in the future. The offer comes after the Detroit automaker said last week it would end it. 500 salaried jobs Globally.

The last time GM offered such a large-scale buyout program was to approximately 18,000 North American office workers in 2018-2019.

In a statement emailed to CNBC on Thursday, GM said, “Employees are strongly encouraged to consider this program.” We can improve and remain agile in an increasingly competitive market.”

announced by GM $2 billion cost savings program In January, it said it expected savings of 30% to 50% during 2023.

GM CEO Mary Barra meets with media ahead of the start of General Motors Corporation’s 2017 Annual Meeting of Shareholders at GM’s global headquarters in Detroit, Michigan, Tuesday, June 6, 2017.

Photo by John F. Martin, GM

U.S. employees approved for acquisition will receive one month’s salary for each year worked up to 12 months and COBRA health insurance. They also receive a prorated team performance bonus and relocation services. Global employees receive base pay, incentives, COBRA and outplacement services.

Eligible employees interested in the program must sign up by March 24th. Approved employees who have opted for the Voluntary Package will depart by June 30th.

A company spokesperson declined to reveal how many employees the company plans to accept for the acquisition package. increase. GM offers to buy ‘majority’ of US salaried workers

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