GM Offering Buyouts, Layoffs Could Happen In Early 2019
Despite posting third quarter earnings that exceeded expectations, General Motors has announced it is offering buyouts to all salaried workers in North America. According to the Detroit Free Press, the company acknowledged Wednesday that if there aren't enough takers there could be layoffs early in 2019. CEO Mary Barra reportedly sent an email to all of GM's 50,000 salaried employees in North America at around 8:30am.
"We sent a letter to employees saying any salaried employee in North America with 12 years or more experience will have the opportunity to take a voluntary severance program," - GM Spokesman Pat Morrissey
Employees who are eligible for the buyout will have until November 19th to make their decision. Those who choose to take the buyout can continue with GM until the end of the year and severance will be effective January 1st.
For several years, GM has been cutting costs, including $6.5 billion in reductions just for 2018. The new round of job cuts are not expected to benefit the company until next year.