Saturday, August 2, 2025

Latest

General Motors Shares Fall After Offering Its US Employees Paid Voluntary Separation

According to a statement addressed to staff Thursday by CEO Mary Barra, General Motors (NYSE: GM) will offer voluntary buyouts to a “majority” of its 58,000 U.S. white-collar employees in order to eliminate $2 billion in structural expenses over the next two years.

The “Voluntary Separation Program” (VSP) will be available to all salaried employees in the United States who have worked for the corporation for five years or more as of June 30, and are classified as being “levels 5-9.” Outside of the United States, the automaker will offer buyouts to executives who have been with the company for at least two years.

“This program is designed to accelerate attrition in the US. Taking this step now will help avoid the potential for involuntary actions,” Barra said in a communique to GM employees.

The buyout offer comes after the Detroit automaker announced last week that it would lay off approximately 500 salaried employees worldwide. This contrasts with what Barra said in the January earnings call that the company wasn’t planning layoffs at the time.

Some observers are reading “involuntary actions” as more potential layoffs should VSP have less than ideal number of takers.

Employees in the United States who are authorized for the buyout will get one month’s compensation for each year worked up to a total of 12 months, as well as COBRA health coverage. They will also earn team performance bonuses and outplacement services on a prorated basis. Global employees will be paid a base pay, bonuses, COBRA coverage, and outplacement services.

The last time GM provided such a substantial buyout program was in 2018-2019 for around 18,000 North American salaried employees.

The buyout offer is the latest move by GM to achieve its recently unveiled $2 billion cost-cutting scheme in January, estimating that 30% to 50% of the savings will be realized by 2023. At the time, officials stated that they intended to reduce headcount through attrition rather than layoffs.


Information for this briefing was found via Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Why Gold’s Bull Run May Just Be Getting Started! | Peter Grandich

Tariffs Spark New Race for Critical Metals | Rob McEwen

Antimony Resources: The Bald Hill Project

Recommended

Tsunami Warnings Spread As Largest Quake Since 2011 Hits Russia

Northern Superior Intersects 1.75 g/t Gold Over 65.0 Metres At Philibert

Related News

General Motors to Resume Production at 5 Plants Following Chip Shortage

General Motors has revealed it will restart production at five of its plants beginning in...

Friday, May 28, 2021, 10:36:00 AM

Apple CarPlay “Will Take Over All Of The Screens” Says Lawsuit

The United States government has filed a lawsuit against Apple (NASDAQ: AAPL), alleging that the...

Friday, March 22, 2024, 10:13:39 AM

Corvette To Become Its Own Brand In 2025

General Motor Co (NYSE: GM) could soon launch one of its most iconic and coveted...

Friday, December 2, 2022, 02:20:00 PM

Unifor Says More Cuts Coming To General Motors’ Canadian Operations

General Motors (NYSE: GM) is reportedly cutting production at its Oshawa Assembly Plant, as per...

Friday, May 2, 2025, 12:52:00 PM

GM, LG Energy Solution Will Build Second $2.3 Billion EV Battery Plant In Tennessee

General Motors has announced it will be building a second battery cell manufacturing plant in...

Saturday, April 17, 2021, 01:01:00 PM