Dive Brief:

• Five thousand people have signed up for a voluntary severance package that was recently made available at General Motors, the company’s CFO said.

• The Detroit-based automobile manufacturer estimates that it will see $1 billion in “run rate savings” as people across the company exit later this year, GM CFO Paul Jacobson said during a Tuesday conference sponsored by Bank of America in New York. 

• The buyout offer was made available to any employees with more than five years of service at GM. It’s part of a larger effort to accelerate attrition and cut costs while avoiding layoffs. “I think we’re in a position where we’re going to be able to do that,” Jacobson said. “Obviously the market is very, very dynamic.”

Dive Insight:

During an earnings call in January, GM CEO Mary Barra said the company was looking to reduce costs by $2 billion within two years.

“The areas we're focusing on include continuing to reduce complexity in all of our products and reducing corporate overhead expenses across the board,” Barra said during the call. “I do want to be clear, though. We're not planning layoffs. We are limiting our hiring to only the most strategically important roles, and we'll use attrition to help manage overall headcount.”

At the Tuesday conference, Jacobson said the cost reduction program is off to a “really, really good head start.” He said the company expects to provide further details during its next earnings call in a few weeks.

Given the results of the buyout offer, company-wide involuntary separations “are not a consideration at this point,” GM spokesperson David Barnas said in an emailed statement. “The steps we are taking will allow us to maintain momentum, remain agile, and create a more competitive GM,” he said.