GM announced it is offering voluntary buyouts to about 18 thousand salaried employees in North America soon after reporting a 25 percent increase in pretax profit for the third quarter.
According to reports, the automaker is calling the buyouts a “proactive” measure as it expects to face headwinds as it invests more in autonomous and electric vehicles. The buyout targets salaried employees who have been with the company for 12 years or more. It is unclear how many employees GM expects to take the buyout, or if they will lay off employees if too few accept the offer.
GM recently reported a major increase in pretax profit for the quarter, with a net income of $2.5 billion. That the buyout has been announced after such a strong quarter is rare for the automotive industry, as most automakers only use such measures if they are struggling or restructuring.