Lede

GM CFO Paul Jacobson announced that 5,000 white collar employees have taken buyouts, with the downsizing expected to save the company $1 billion annually.

Summary

• GM offered buyouts to all US salaried staff with at least five years at the company and international executives who had worked at GM for at least two years.
• The voluntary program was offered in three packages based on level and service to the company, with employees "strongly encouraged to consider the program."
• GM will take a $1 billion charge in the first quarter due to the buyouts, but expects to save the same amount annually.
• The company also confirmed in March that it cut a "few hundred" salaried staff following performance calibration.
• While GM aims to avoid involuntary layoffs, other automakers such as Ford and Stellantis have also been cutting staff numbers in a cost-cutting effort.
• GM has 81,000 salaried employees worldwide, with 58,000 in the US and 46,000 hourly US workers represented by the United Auto Workers.
• The company faces contract talks with the UAW this fall and is transitioning from gas-powered to all-electric vehicles, with a target to build 1 million EVs annually by 2025.