General Motors said it's offering voluntary buyouts to the majority of salaried staff as part of a plan announced in January to cut $2 billion in annual costs.
The Detroit automaker will offer the workers lump sum payments and other compensation based on tenure, according to a regulatory filing Thursday. The move is designed to "accelerate the normal attrition process and the resulting cost savings," GM said.
GM anticipates as much as $1.5 billion in pre-tax, mostly cash-based charges related to the separation program and $300 million pre-tax, non-cash pension curtailment charges. The majority of costs will be incurred in the first half of this year.
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The buyouts come shortly after Chief Executive Officer Mary Barra cut hundreds of management jobs as the company weeded out poor performers.
Rival Ford Motor has been cutting
In a letter to employees, Barra said the buyout offer would go to the majority of salaried employees in the U.S. operations, but not to GM-Financial or the company's Cruise self-driving vehicle unit. It also does not apply to staff in Europe, Mexico, Canada or Korea. The company had about 81,000 salaried workers as of Dec. 31.
In January, Barra said GM would look for ways other than forced layoffs to reduce headcount.
"I do want to be clear, though: We're not planning layoffs," Barra said on the fourth-quarter earning call. "We are limiting our hiring to only the most strategically important roles and we'll use attrition to help manage overall headcount."
