- General Motors will offer voluntary takeovers to a “majority” of its U.S. employees, according to a letter CEO Mary Barra sent to employees Thursday.
GM CEO Mary Barra speaks to media ahead of 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 voluntarily buy out a “majority” of its U.S. white collar workers as it seeks to cut $2 billion in structural costs over the next two years, according to a letter CEO Mary Barra sent to employees Thursday.
The Voluntary Separation Program, or VSP, is offered to all U.S. salaried employees who have been with the company for five years or more. Outside the US, the automaker also offers buyouts to executives with at least two years of service or more.
GM expects to take a pre-tax charge of up to $1.5 billion in connection with the buyouts, according to a Thursday public filing by the company.
“Employees are strongly encouraged to consider the program,” GM said in an emailed statement to CNBC on Thursday. “By permanently reducing structural costs, we can improve vehicle profitability and remain flexible in an increasingly competitive market.”
Eligible employees interested in the program must apply by March 24. Those who choose to take a voluntary package and are approved will leave on June 30.
At the end of last year, GM had some 81,000 salaried employees worldwide, according to public filings.
The acquisitions come after the Detroit automaker said last week it would be terminating about 500 paid positions worldwide.
This is news in development. Check back later for additional information.
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