GM CEO Mary Barra talks with media prior to the start of the 2017 General Motors Company Annual Meeting of Stockholders Tuesday, June 6, 2017 at GM Global Headquarters in Detroit, Michigan.
Photo by John F. Martin for GM
DETROIT – General Motors will offer voluntary buyouts to a “majority” of its U.S. white-collar employees, as it aims to cut $2 billion in structural costs over the next two years, according to a letter sent to workers Thursday from CEO Mary Barra.
The “Voluntary Separation Program,” or VSP, will be offered to all U.S. salaried employees who have spent five or more years at the company. Outside of the U.S., the automaker also is offering buyouts to executives with at least two years of time or more.
GM expects to take a pre-tax charge of up to $1.5 billion related to the buyouts, according to a public filing Thursday by the company.
“Employees are strongly encouraged to consider the program,” GM said in an emailed statement to CNBC Thursday. “By permanently bringing down structured costs, we can improve vehicle profitability and remain nimble in an increasingly competitive market.”
Eligible employees interested in the program must sign up by March 24. Those who elect to take a voluntary package and are approved will depart by June 30.
At the end of last year, GM employed about 81,000 salaried employees worldwide, according to public filings.
The buyouts come after the Detroit automaker said last week it would terminate about 500 salaried positions globally.
This is developing news. Please check back for additional information.
