Cash out or move on: GM offers buyouts to cut costs
In January, GM CEO Mary Barra told analysts that the company wasn’t planning for any layoffs. Seems that things have quickly changed! In a bit to accelerate attrition to meet a previously announced goal of $2 billion in cost cuts by the end of next year, General Motors is offering buyouts to most of its salaried workforce. The move is likely to avoid any possible firings at a later date. The buyouts are reportedly one month of pay for every year of service, up to 12 months. Additionally, these employees who accept the buyout will be offered COBRA health care and part of the bonuses they would receive this year if they were to remain on board.
GM’s auto sales remain strong, but the price tag on EV’s is beginning to waver. With automakers increasing production after being hobbled by a global shortage of computer chips, a slowdown in auto sales is forcing companies to offer more lucrative deals to appeal to customers.
The recent woes faced by America's leading automakers - Ford, General Motors, and Stellantis - have gone largely unnoticed amidst their impressive profits.