GM confirmed Thursday most of its salaried employees would be eligible for voluntary separation.
Automakers have been slashing staff and tightening their belts in the wake of inflation and billions in investments toward electric vehicles. General Motors is the latest example, as it will reduce its 58,000-strong white collar workforce to achieve up to $2 billion in cost savings, and those affected have until March 24 to make a decision.
While not technically a layoff, GM says it will “accelerate attrition” through this voluntary separation program to reduce its overall headcount and rein in its overhead. The program is open to all U.S. salaried employees with at least five years of service, or global executives with at least two years of service.
“This voluntary program offers eligible employees an opportunity to make a career change or retire earlier,” said spokesperson David Barnas. “We are offering three packages based on level and service to the company. By permanently bringing down structured costs, we can improve vehicle profitability and remain nimble in an increasingly competitive market.”
This move comes after a February announcement wherein GM cut roughly 500 salaried positions throughout the company.
The automaker posted a record $14.5 billion in pre-tax earnings last year and expects earnings to drop to between $10.5 and $12.5 billion for 2023.