GM Offers Buyouts to 18,000
CBJ — Despite posting a strong third-quarter profit, Detroit-based General Motors is offering about 18,000 white-collar workers early buyouts as a means to further cut down on operating costs.
Earlier this week GM reported a $3.3 billion third-quarter profit. Although the buyouts are not critical to the company’s bottom line right now, it’s money that will need to be budgeted for other projects in the near future as the automaker prepares for the advent of electric and autonomous vehicles.
“Even with the progress we’ve made, we are taking proactive steps to get ahead of the curve by accelerating our efforts to address overall business performance,” GM said in a statement. “We are doing this while our company and economy are strong.”
The buyout offers are mostly for U.S. workers, although some Canadian executives have also been included. The offers are being given to those executive salaried employees who have 12 or more years of service with the company.
Eligible employees will have until November 19 to decide if they want to take the voluntary severance. GM has about 50,000 salaried employees in North America.