General Motors employee buyout deadline passes; layoffs now expected
3,000 or more salaried workers face possible layoff
DETROIT – General Motors has a salaried workforce of about 50,000 employees.
Nearly 18,000 of those employees qualified for a buyout offer that included six months pay and six months of healthcare coverage. The automaker announced the buyout offer on the same day it reported $2.5 billion in 3rd quarter profits. The company has been disciplined on costs and has enjoyed strong SUV and truck sales.
Despite its profits, GM was hoping 7,000 employees would accept the buyout. That doesn't appear to be the case. Reports are the number is closer to 4,000 employees, meaning 3,000 or more salaried workers in North America could be out of work starting in January.
These cutbacks are due to slowing sales in the United States and China as well as rising prices for products such as steel and aluminum. An advisor said if the job cuts happen, they'll be announced Jan. 15. White collar workers will be walked out.
Again, these layoffs are salaried workers only. Hourly workers' contract with GM is up in September 2019.
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