General Motors is offering voluntary retirement with compensation to most of its salaried workforce in the country and some global managers as part of its plan to reduce costs in the transition to electric vehicles (EVs).
The Detroit automaker did not clarify the number of recalls, but confirmed that it is trying to accelerate the reduction of personnel to meet a previously announced goal of reducing costs by 2,000 million dollars by the end of 2024. GM has about 58,000 salaried workers in the United States Joined.
The company said the offers are also aimed at avoiding layoffs later.
Offers will go to white-collar workers with at least five years of seniority and global managers who have been with the company for at least two years.
The offer for US wage earners is one month’s salary for each year of work up to a maximum of 12 months. They will also receive COBRA medical coverage and part of the benefits for this year.
The automotive industry is going through a period of uncertainty, amid the transition from internal combustion engines to electric ones. GM’s goal is to sell only electric passenger vehicles by 2035.
This requires spending more on research and development on both types of vehicles, huge capital investments in battery factories and upgrading assembly plants, as well as spending to source the scarce metals that EVs require.
The cuts are also aimed at preparing the company for any possible slowdown or recession in the economy, chief financial officer Paul Jacobson said at an analyst conference in February.
Although GM’s sales remain strong, the company sees the prices of its vehicles beginning to decline. “We want to be cautious because we don’t want to ignore the macro signals that show up, because I don’t want to be here a year from now and say, oh, we didn’t see it,” Jacobson explained.