General Motors has announced it will offer buyouts to its North American salaried employees with 12 or more years on the job, according to Fortune.
The move comes after the company previously warned President Donald Trump that his tariffs potentially would result in fewer jobs and lower wages for Americans.
> The voluntary severance program was announced shortly after the company’s third-quarter earnings report where it reported an operating profit of $2.5 billion and 10.2% profit margins in North America, The Detroit Newsreports.
> 18,000 employees are reportedly eligible for the offer. They have until Nov. 19 to choose to opt in.
GM did not disclose its cost-saving target or detail specifics of the buyout offer, Fortune reported, but the company said it will reevaluate the possible need for layoffs after the November 19 deadline.
> In June, GM warned the Trump Administration that its steel tariff might potentially lead to fewer jobs and lower wages for Americans working for car companies in the states. Trump had also suggested imposing a 25% tariff on imported cars, a move analysts thought was intended to pressure Mexico into renegotiating the NAFTA trade pact. At the time, GM said such a move would likely lead it to raise prices or move its manufacturing facilities elsewhere. An aide to President Trump dismissed GM’s concerns as “smoke and mirrors.”
Fortune noted that GM said in a statement the move is intended to get “ahead of the curve,” which could mean it anticipates “future business-damaging orders from Trump.”