Summary
What's the name of the company?
General Motors (GM)
Name the three business terms.
employee buyout, attrition, discretionary costs
How many people are currently eligible for the buyout in the US?
58,000
What's the deadline to accept the buyout?
March 24, 2023
Explain what an employee buyout is.
when a business offers specific employees a voluntary severance package.
Why might someone accept the buyout offer?
change careers, start their own business, retire
How much is General Motors trying to save by the end of 2024?
$2 billion
What are discretionary costs? Give examples.
the non-essential expenses of a business
How many job cuts were there in 2018?
14,000
What's included in the buyout?
- one month of pay for every year at GM
- COBRA health coverage
- help finding a new job
What are some types of attrition?
voluntary attrition, involuntary attrition, internal attrition, demographic-related attrition
How many people were eligible for the employee buyout in 2018?
18,000
Who is eligible for the employee buyout?
US salaried employees --> minimum of five years
global executives --> minimum of two years
Explain all three business terms.
employee buyout --> when a business offers specific employees a voluntary severance package.
attrition --> a reduction in the number of employees, people leave a company and no one replaces them.
discretionary costs --> the non-essential expenses of a business.
Why was there an employee buyout in 2018?
reduce some of their costs to prepare for changes in production (for example, electric vehicles and new technologies), expecting less sales in North America and China.