Delphi Corporation is offering its US salaried workers financial incentives to leave the company by the end of the year, Automotive News reported.
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A Delphi spokeswoman told the motor industry newspaper that the firm has 16,000 salaried workers and wants 500 employees, or 3%, to leave voluntarily – if that goal is not reached, it will lay off some employees.
“This is part of a number of ongoing structural cost reduction activities,” the spokeswoman said, according to Automotive News.
The paper said Angelo would not disclose terms of the exit packages, but Business First of Buffalo in New York reported that employees will receive severance pay ranging from three months of base salary for up to five years of service to 12 months of pay for employees of 25 years or more.
Automotive News said Delphi began offering the incentives to leave the company on September 30 and previously offered similar incentives to salaried workers in 2000 and 2001.
Separately, Delphi’s divisions individually are reviewing levels of contract employees, the paper added.
