GM Warns Of Cutting 500 Execs, Offers Buyouts Worth $1.5 Billion

  • General Motors will offer voluntary buyouts to a “majority” of its U.S. white-collar employees, as it aims to cut $2 billion in structural costs over the next two years, according to a letter sent to workers Thursday from CEO Mary Barra.
  • The “Voluntary Separation Program,” or VSP, will be offered to all U.S. salaried employees who have spent five or more years at the company as of June 30. Outside of the U.S., the automaker also is offering buyouts to executives with at least two years of time or more.
  • GM expects to take a pre-tax charge of up to $1.5 billion related to the buyouts, according to a public filing Thursday by the company. It comes after the Detroit automaker said last week it would terminate about 500 salaried positions globally.
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