GM offers buyouts to most salaried employees, in a bleak warning for white-collar workers

• GM employees have until March 24 to accept buyout offers.
• Salaried employees with at least five years of experience qualify for the buyouts.
• The move is part of a plan to cut $2 billion in costs by the end of next year.

General Motors is implementing a sweeping buyout program that covers a majority of its salaried workforce as the car company continues to cut costs to fund an electric future.

Any salaried GM employee with at least five years of experience or executive with at least two years of experience at the car company qualifies for the voluntary buyout program, sent to employees in a letter Thursday. 

The buyout program is part of GM's plan to "accelerate attrition and achieve $2 billion in cost savings by the end of 2024," spokesperson Maria Raynal said in an emailed statement.

Packages vary by job title and tenure. All US salaried employees with at least five years of experience are eligible for one month of pay for every year of service up to 12 months, as well as a pro-rated performance bonus and outplacement services, the spokesperson said. 

Eligible employees have until March 24 to accept the buyout offer, and once approved will leave the company by June 30.

"By permanently bringing down structured costs, we can improve vehicle profitability and remain nimble in an increasingly competitive market," Raynal said.

GM last rationalized its workforce in 2019, slashing about 15% of its North American salaried employees at the same time the company initiated plans to close several factories. Earlier this year, some experts wondered if GM and other car companies would outrun a larger trend of layoffs hitting the tech sector due to these actions. 

But as EV rollouts at the company stall, according to a report this week from The Wall Street Journal, it appears more downsizing is necessary.

Other car companies have announced job cuts this year, including Rivian and Ford. But GM's is the largest so far, impacting a majority of its 81,000 white-collar workers around the world.