GM nets 47,600 buyouts
#1
06-28-2006, 08:56 AM
Join Date: Nov 2005
Location:
Posts: 401
Likes: 0
Received 0 Likes
on
0 Posts
GM nets 47,600 buyouts
GM nets 47,600 buyouts
General Motors Corp. said that 35,000 hourly employees accepted its offers for early retirements or buyouts, while another 12,600 UAW members employed at Delphi have also opted for one of the retirement options available under the plan, bringing the total number of employees heading for exits at both companies to nearly 48,000. The total exceeded expectations of both analysts and GM and Delphi executives. GM will be able to reduce its costs more quickly—by as much as $8 billion annually—because of the take-rate by hourly employees, thus freeing resources to pay for new technology and new products. GM expects to take a net-after-tax charge currently estimated in the range of $3.8 billion related to the attrition program, primarily for payments to employees and for the effect of the re-measurement of both GM's U.S. pension liabilities and other post-employment benefits liabilities. The charge will likely be taken against GM's second-quarter earnings. (The Detroit News )
This averages to around $80,000 net-after-tax per employee.
GM's stock dropped $1.85 (6.67%) on this news yesterday.
General Motors Corp. said that 35,000 hourly employees accepted its offers for early retirements or buyouts, while another 12,600 UAW members employed at Delphi have also opted for one of the retirement options available under the plan, bringing the total number of employees heading for exits at both companies to nearly 48,000. The total exceeded expectations of both analysts and GM and Delphi executives. GM will be able to reduce its costs more quickly—by as much as $8 billion annually—because of the take-rate by hourly employees, thus freeing resources to pay for new technology and new products. GM expects to take a net-after-tax charge currently estimated in the range of $3.8 billion related to the attrition program, primarily for payments to employees and for the effect of the re-measurement of both GM's U.S. pension liabilities and other post-employment benefits liabilities. The charge will likely be taken against GM's second-quarter earnings. (The Detroit News )
This averages to around $80,000 net-after-tax per employee.
GM's stock dropped $1.85 (6.67%) on this news yesterday.
