common engine is trying to cut costs by $2 billion over the next few years, so the company is now offering to buy back most of its salaried employees in the United States. The automaker’s CEO, Mary Barra, sent a memo to US employees on Thursday calling the acquisitions “voluntary severance packages,” as auto news report.
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Acquisitions are being offered to US salaried employees who have been with the company for five years or more, as well as to global executives with two or more years at the company. Workers will have until March 24 to think things through and acquirers will have until June 30 to leave the company. car news.
If American salaried people choose to accept GM’s offer, they will receive one month’s salary for each year they work at the company. However, the redemption will be limited to 12 months and it includes COBRA health insurance as well as performance-based prorated bonuses. Severance packages will include all of the above and other incentives available to non-executives, while executives will be eligible to receive their base salary, incentives Undisclosed offer or bonus, and COBRA insurance.
These acquisitions are subject to a layoff ring which GM says is due to performance-related issues, not as a measure to cut down the costs. Barra said earlier that the automaker has no plans to lay off or terminate contracts to achieve cost-cutting goals.
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At the time of Barra .’s statementGM has 58,000 salaried workers in the US, according to car news. The CEO mentioned that GM is trying to reduce costs, but went on to say that:
Areas we are focusing on include continuing to reduce complexity in all of our products and reducing overall company costs […] However, I want to be clear: We have no plans to lay off employees. We’re limiting our hiring to only the most strategically important roles, and we’ll be using attrition to help manage total headcount.
Now, Barra is shaping the acquisition as a way to accelerate the attrition rate of GM workers in the US. The company says the acquisition will give workers the opportunity to change careers or retire early. A GM spokesperson emphasized that these acquisitions are voluntary, though they also added that “employees are strongly encouraged to review the program.”
