GM spend 1.5 billion on Employee Share Buyback
2023.03.09 12:44
GM spend 1.5 billion on Employee Share Buyback
By Ray Johnson
Budrigannews.com – On Thursday, General Motors stated that it would provide buyouts to the majority of its salaried employees as well as global executives and that it would take a pre-tax charge of up to $1.5 billion to cover the costs.
The tech industry accounted for more than a third of the over 180,000 job cuts that were announced in the last two months, making the announcement come at a time when layoffs by American businesses have reached their highest level since 2009.
In January, the largest automaker in the United States announced a goal to cut costs by $2 billion, which would include cutting jobs through attrition.
GM said that as part of the staff reduction plan, all salaried employees in the United States who have worked for the company for at least five years and all global executives who have worked for the company for at least two years will be offered lump sum payments and other forms of compensation to leave the company.
The automaker stated, “Employees are strongly encouraged to consider the program.” We can increase vehicle profitability and remain agile in a market that is becoming increasingly competitive by permanently lowering structured costs.”
In the first half of 2023, it anticipates taking the majority of the cost.
At the end of 2022, GM had 58,000 salaried employees, and its share price decreased by about 1%.
To participate in the voluntary program, eligible employees must sign up by March 24, and those who do so must leave GM by June 30.
The company’s job cuts from last month are not related to the buyouts.
In February, a GM executive stated that the company was eliminating hundreds of salaried executive-level positions. Ford Motor Company (NYSE:) In the next three years, Co said it planned to eliminate 3,800 jobs in product development and administration in Europe.
