GM offers sweeping buyouts for U.S. employees

General Motors on Thursday said all salaried employees in the United States and some international executives are eligible for a voluntary separation program. The Detroit-based automaker is attempting to shrink costs by $2 billion over the next two years. Any salaried worker who has been with the company for at least five years can receive one month of pay for every year of service up to 12 months. Executives with at least two years of experience are also eligible. Employees must sign up by March 24.

Why is GM offering this program? Officials with the company say the move is part of an effort to free up financial resources to research and develop new vehicles, including electric models. The manufacturer has a goal of only selling electric models by 2035. The company last week said it would plan to terminate about 500 salaried positions globally, but it remains unclear how many it is targeting to accept the buyout.

Dig deeper: Listen to Mary Muncy’s report on The World and Everything in It about electric vehicle supply chains.