During an earnings call in January, GM said it wanted to eliminate two billion dollars in structural cost. Paul Eisenstein is publisher of automotive website The Detroit Bureau dot-com. He says the automaker is targeting higher-earning salary employees with the buyout offer in an effort to reach that goal.
“This voluntary separation program alone won’t do that… but it could yield significant savings.”
Eisenstein says, in addition to offering the most savings, eliminating certain high-earning salary jobs can also allow the manufacturer to streamline its business operations. General Motors employees who were offered a buyout have the option of accepting it through March 24th.
