GM has approximately 58,000 salaried employees in the United States, around 60 percent of whom work in Michigan across 25 facilities and offices in the state, including GM's global headquarters at the Renaissance Center in Detroit to the tool and die fabrication plant in Flint. (Related: Layoff saga continues as 12 more companies announce mass employment terminations.)
GM spokesperson David Barnas confirmed that the company has offered voluntary separation packages to all salaried employees in the U.S. with at least five years of service and all global executives with at least two years of service. Barnas added that this filter captures around 35,000 of GM's salaried employees.
The voluntary buyout program is part of GM's plan to reach $2 billion in fixed costs savings by 2024. As part of this, GM's hiring also is paused except for only the most critical positions.
"The goal of the program is to accelerate attrition. It is also designed to help avoid the potential for involuntary actions," said Barnas. "By permanently bringing down structured costs, we can improve vehicle profitability and remain nimble in an increasingly competitive market."
Employees who take up GM's offer will be offered one month's pay for every year of service up to 12 months' worth of pay, in addition to pro-rated performance bonuses and healthcare and outplacement services. Global executives who take up the buyout offer will be offered a base salary and undisclosed incentives.
"This voluntary program offers eligible employees an opportunity to make a career change or retire earlier," claimed GM spokesperson Maria Raynal. "Employees are strongly encouraged to consider the program."
Last year, GM admitted that it has received over $3.8 billion in tax credits that it kept secret for a decade.
GM received $3.8 billion in tax credits through the Michigan Economic Growth Authority program instituted following the aftermath of the Great Recession. While the program is now defunct, the state estimates it will be paying out the tax credits to GM until 2030.
Furthermore, according to 100% Fed Up, GM received an additional $1 billion in tax incentives from the Michigan State Government due to the company promising to create thousands of new jobs by investing in electric vehicle production. The jobs would have gone to plants creating electric vehicles and electric car batteries.
The media outlet further reported that, in less than two months in office, the government trifecta the Democratic Party has in Michigan has already handed out $2.9 billion in corporate handouts to multiple major corporations. This includes GM and its competitor Ford, to whom the Democrats promised $650 million in subsidies to build a battery plant.
It should also be noted that GM closed out 2022 on a high note, with revenues exceeding expectations at $156.7 billion and net income attributable to stockholders at $9.9 billion. Earnings before taxes also hit a record-high of $14.5 billion.
Learn more about the state of the American economy at MarketCrash.news.
Watch this episode of "Zoon Politikon" as host Holly Seeliger discusses other companies that have announced layoffs, including shipping companies like FedEx, and how this could be a sign of the collapsing economy.