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General Motors offering buyouts : NPR


The General Motors logo is displayed outside the General Motors Detroit-Hamtramck Assembly plant, January 27, 2020, in Hamtramck, Mich.

Paul Sanya/AP


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Paul Sanya/AP


The General Motors logo is displayed outside the General Motors Detroit-Hamtramck Assembly plant, January 27, 2020, in Hamtramck, Mich.

Paul Sanya/AP

General Motors is offering to buy American salaried workers and some global executives in a bid to cut costs by $2 billion over the next two years as the Detroit automaker transitions to electric vehicles.

Chief Executive Officer Mary Barry said in a statement on Thursday that the “voluntary segregation program” will be offered until March 24 and is a step to help avoid “involuntary actions” later. .

“By permanently reducing structured costs, we can improve vehicle profitability and stay agile in an increasingly competitive market,” she said.

The acquisition will be made available to salaried employees with at least 5 years at GM, as well as to global executives with at least 2 years.

The company has about 58,000 salaried employees in the US. It’s unclear how many employees GM is targeting to acquire.

General Motors initially announced $2 billion in trims in Januarywith the company saying it expects savings of between 30% and 50% by 2023.

In 2021, GM announced that it aims to produce only electric vehicles by 2035.

However, the transformation of car companies has also led to layoffs.

“Over the past year, both Ford and Chrysler parent company Stellantis announced layoffs in the United States due to the switch to electric vehicles – Cutting 3,000 jobs in August and Stellantis laying off more than 1,000 in February, ” Forbes report.

Chief Financial Officer Paul Jacobson said in February that General Motors’ cost-cutting measures were also being taken to prepare for the possibility of a future recession or recession. according to the Associated Press.

Speaking at the Wolfe Research conference, Jacobson said that while GM’s auto sales are still strong, the company is seeing car prices start to fall.

“We want to be cautious because we don’t want to ignore the existing macro signs, because I don’t want to be here a year from now and say, uh, we missed it,” Jacobson said. .

The response to the cost-cutting and acquisition measures has so far been muted. Although some netizens have criticized General Motors for cutting its workforce just over a decade after the company was bailed out by the US government during the 2008-2010 auto industry crisis.

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