General Motors said about 5,000 of its salaried workers and executives have accepted voluntary buyout offers through a separation program announced last month. The U.S. automaker expects to take a $1B charge during the quarter due to the program.
- GM CFO Paul Jacobson said the opt-in rate for the “Voluntary Separation Program” was in line with company expectations.
- Last month, CEO Mary Barra said that if not enough employees participated in the program, the automaker might resort to layoffs.
- The company expects most of the employees who took the buyout to leave the company by the end of June.
- The headcount reduction is part of GM’s plans to cut $2B in structural costs by the end of 2024.
- GM shares fell about 2% following the news; it closed at $35.74 on Tuesday, down ~1.5% for the day.