GM starts voluntary retirement programme to keep cutting costs
CEO Mary Barra has offered buyouts to salaried workers in North America who have been at GM for at least 12 years
Southfield, US — General Motors (GM) is following a strong quarterly earnings report with a plan to keep cutting costs by starting a voluntary retirement programme for some employees.
On Wednesday, CEO Mary Barra offered buyouts to salaried workers in North America who have been at the company at least 12 years. If not enough people accept the offer, GM may consider involuntary cuts, said Pat Morrissey, a company spokesperson.
The cuts are meant to keep GM lean even as its global sales and profit remain strong. The vehicle maker just beat expectations for third-quarter earnings by a wide margin, which sent the stock soaring as much as 8.5%.
GM has been focused on cutting structural costs for the past several years. The automaker expects to hit a target of $6.5bn in reductions for 2018.