General Motors (GM) has begun implementing significant workforce changes through its newly introduced performance review system, which reportedly identifies the bottom 5% of performers for immediate termination. With these changes and cuts actively rolling out across the organization, understanding what to expect from severance packages becomes essential for potentially affected employees. If you received a lower-than-expected performance review this season, we've assembled this guide to help you navigate what might come next. We'll examine past severance trends at GM, compare them with industry standards, and explain how sharing your severance details on fired.fyi can help you negotiate a better package by seeing how your offer stacks up against others.

General Motors Layoffs 2025: What We Know So Far

GM launched a new performance evaluation framework in 2024 that segments employees into five tiers, with the bottom 5% marked as "Does Not Meet Expectations." Internal communications indicate these employees will face "appropriate action" - which employee reports now suggest translates to immediate termination.

Anticipated Scale

• Review Schedule: GM conducts biannual performance reviews, with results shared with employees in January and July, potentially leading to two rounds of cuts per year.
• Scope: With roughly 53,000 salaried employees in the U.S., each 5% reduction would affect 2,650 employees. Over two cycles, this could impact up to 5,300 employees annually.

Recent Developments

Beyond performance-related cuts, GM has announced production-related layoffs:

• Fairfax Assembly Plant: Plans include letting go of 1,695 workers in two phases: November 18, 2024, and January 12, 2025, as part of the shift toward electric vehicle production.

Employee Reports

As of January 2025, employees have started sharing experiences on various platforms indicating that "appropriate action" indeed means immediate termination for those in the bottom 5%. Multiple reports describe separations happening without warning or improvement plans, suggesting this system serves as a streamlined approach to workforce reduction.

Breakdown of General Motors' Previous Severance Packages

GM's approach to severance has evolved over the years, adapting to changing business conditions. Here's an examination of GM's historical severance practices:

Salaried Employee Programs

The 2018 Voluntary Separation Program (VSP) marked a significant milestone in GM's approach to workforce reduction. Targeting North American employees with 12+ years of continuous service, it offered six months of base pay and continued healthcare coverage. The package included outplacement services, career counseling, and optional extensions for healthcare and life insurance benefits.

In 2019, GM's involuntary separation program provided two weeks of pay per year of service, capped at six months, with six months of healthcare coverage. Additional benefits included pro-rated bonuses, vacation payouts, accelerated stock vesting, and career transition support.

By 2023, GM's voluntary program offered enhanced benefits: one month of base pay per year of service (capped at 12 months) with matching healthcare coverage. The package included career support, prorated bonuses, extended stock vesting, and continued life insurance coverage.

Hourly Employee Programs

The standard union package, outlined in the UAW-GM National Agreement, provided one week per year of service (max 26 weeks) with healthcare continuation based on service length. It included Supplemental Unemployment Benefits, job bank access, and transfer rights, plus enhanced pension benefits for retirement-eligible employees.

The 2019 plant closure packages maintained the one-week-per-year formula while adding relocation assistance, enhanced training benefits, and extended recall rights. The company provided transition support through training centers and job fair facilitation.

Executive Severance Program

The U.S. Executive Severance Program provided comprehensive support for senior leaders. Benefits included 2-3 times annual salary, target bonus multiples, pro-rated bonuses, and stock acceleration. Additional perks encompassed company-paid COBRA coverage, executive health screening, outplacement services, and financial planning assistance.

Comparison of General Motors' Severance Packages with Industry Competitors

Ford Motor Company

• Early Career (0-5 Years): Generally one month of salary
• Veteran Staff (20+ Years): Up to nine months of salary

Note that packages aren't strictly linear - those with under 10 years typically receive three months or less. Terms vary by individual circumstances, so affected employees should consult Ford HR for specifics.

Stellantis (Former Fiat Chrysler)

• Voluntary Program:
  • Offered to U.S. salaried staff
  • Reports indicate up to 13 months of salary for eligible employees
• Involuntary Separations:
  • Typically two months of severance pay

What to Expect from General Motors' Severance Packages in 2025

Based on GM's historical practices and recent trends, here's a breakdown of what different employee categories facing involuntary departure might anticipate in 2025:

Salaried Staff

Financial Package:

• Base Severance: Two weeks of base salary per year of service
• Maximum Benefit: Six months of total pay
• Bonus Treatment: Pro-rated portion of annual bonus
• Stock Compensation: Accelerated vesting through separation date

Healthcare Benefits:

• Medical Coverage: 6-12 months of continued coverage
• COBRA Benefits: Subsidized rates for extended period
• Health Savings Account: Continued company contributions through severance period
• Dental/Vision: Coverage matching medical insurance duration

Hourly Workers

Base Package:

• Severance Pay: One week per year of service
• Maximum Duration: 26 weeks
• Shift Premiums: Included in base pay calculations
• Overtime Averages: Factored into weekly pay

Union-Specific Benefits:

• Supplemental Unemployment Benefits (SUB):
  • Weekly supplements to unemployment
  • Duration based on seniority
  • Additional allowance for training
• Healthcare Continuation:
  • Based on service length
  • Transition coverage options
  • Dental/vision inclusion
• Retirement Considerations:
  • Pension service credits
  • Early retirement options
  • Healthcare bridge provisions

Executive Level

Financial Framework:

• Base Severance:
  • Multiple of annual salary (2-3x)
  • Target bonus multiple
  • Pro-rated current year bonus
• Equity Compensation:
  • Accelerated vesting provisions
  • Extended exercise periods
  • Performance share treatment

Healthcare and Benefits:

• Medical Coverage:
  • Premium COBRA coverage
  • Extended executive health screening
  • Wellness program continuation
• Insurance Programs:
  • Life insurance continuation
  • Disability coverage bridge
  • Executive medical reimbursement

Moving Forward

While we await concrete details about GM's 2025 packages, you can take action now by contributing past severance information to gain early access to our comparison database. Your shared data helps others understand their options and negotiate better terms. When you receive your package, remember that submitting your offer details helps both you and future employees maximize their outcomes. For any unclear aspects of your severance or the separation process, consulting an employment attorney is always recommended.

Remember, you're not alone in this transition. By sharing information and supporting each other, we can all work toward better outcomes. Stay informed, know your worth, and don't hesitate to advocate for yourself during negotiations.