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General Motors will extend severance benefits to about 5,000 front-office employees as part of staff reductions and other cost-cutting measures announced by the company earlier this year.
Buyouts are a way to incentivize employees to leave a company in order to reduce wage expenses and bring down costs.
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About 5,000 white-collar workers at GM opted to participate in a buyout program to lower the automaker's global head count and fixed costs.
The company will achieve about $1 billion in cost savings on an annualized basis as the employees exit this year.