General Motors announces voluntary separation program

In a regulatory filing, General Motors announced a voluntary separation program in an effort to accelerate the normal attrition process and the resulting cost savings. "Under the terms of the VSP, eligible employees who choose to leave the Company will be offered a combination of lump sum payments and other compensation based on their years of service. In connection with the VSP, the Company expects to incur up to $1.5B of pre-tax employee separation charges, which will be substantially all cash-based, and up to $300M in pre-tax, non-cash pension curtailment charges. The final amount of the charges will be based on the composition of employees who elect to participate in the VSP. The Company anticipates that substantially all of these charges will be considered special for EBIT-adjusted, EPS-diluted-adjusted, and adjusted automotive free cash flow purposes. The Company expects to incur the majority of these charges in the first half of 2023, with some additional costs incurred throughout the remainder of the year, and to make substantially all of the cash payments by the end of 2023."