GM will give the majority of its US team cash if they quit in the next two weeks

Many of General Motors’ employees in the United States were recently offered cash if they choose to resign in the upcoming two weeks. This news came as a surprise to many staff members, who felt that GM had left them with no other option if they wished to continue with this American carmaker.

GM’s North American president, Barry Engle, stated that the automotive giant wanted to provide a severance package to staff members in order to “shape a future product lineup that will better serve consumers and the evolution of the automotive industry.”

The two-week window for employees to opt-in for the cash offer has been implemented in several factories in Michigan, Ohio, and Indiana. Those who accept will receive a discounted buyout package along with a health package that includes a year of medical coverage. GM employees who have worked with GM for at least 15 years will receive a $75,000 buyout package, while those who have been with the corporation for fewer than 15 years will receive $45,000 prizes.

As the industry evolves, GM continues to streamline itself, and as a result, will enter a period of significant change. This change is forced by competition from companies like Tesla, who continue to pressure traditional carmakers to make their trucks, SUVs and cars more profitable, electric, autonomous and technologically advanced. GM is redirecting its focus in 2020 to these areas and plans to move up to 6,700 employees out of their current positions in the US.

This news has already caused some controversy, as the buyout packages are reportedly higher than expected. While a number of dissatisfied employees could benefit from the offer, many workers feel like they’re being forced into making a difficult decision in response to a rapidly changing industry.

For now, GM’s cash offer stands, and employees have two weeks before the offer expires. Ultimately, GM’s plan represents a harsh reality for employees in the auto industry, as transitioning to an autonomous and structured vehicle sector means that the skills of certain employees are no longer needed. This could possibly mean layoffs in the near future, something GM will most likely try to avoid.