General Motors has kicked off its “Voluntary Separation Program” or VSP for eligible employees.
The offer will be available to all U.S. salaried employees who have
worked for the automaker for five or more years as of June 30. GM
expects to take a pretax charge of up to $1.5B for the program.
- GM will offer lump-sum payments and other compensation based on years of service to the eligible employees under the program.
- Eligible
U.S. employees will receive one month’s pay for every year they worked
up to 12 months and receive COBRA health coverage as well.
- Employees interested in the program have until March 24 to sign up.
- Eligible employees who take the voluntary package will leave the company by June 30.
- GM has about 81,000 salaried employees globally.
- GM had previously stated it plans to cut about $2B in annual fixed costs.
- The automaker expects to realize 30% to 50% of the $2B target savings this year and the remainder in 2024.
