General Motors Corporation has announced that it lost $722 million over the fourth quarter and offered buyouts to all 74,000 of its unionized employees to slice operating costs. Retirement-eligible workers represented by the United Auto Workers (UAW) will get between $45,000 and $62,500 as an incentive to retire, depending on their skill level, while younger workers who have not reached retirement age can get up to $140,000 if they leave and cut all ties with the carmaker.

GM hopes that the majority of its expensive workers to leave by July 1 so it can hire cheaper replacements. About 46,000 GM workers are eligible for retirement, while the rest will receive the higher incentives, more exactly $70,000 for those with less than 10 years with the company and $140,000 for those with 10 years or more of service.

“We’re pleased with the positive improvement trend in our automotive results, especially given the challenging conditions in important markets like the U.S. and Germany, but we have more work to do to achieve acceptable profitability and positive cash flow,” GM’s chief executive, Rick Wagoner, said in a statement.

Workers will have 45 days to consider the offers and then seven days to reconsider, GM said. Also, workers will be able to choose between a lump-sum payment, an annuity, or to roll part or all of it into an individual retirement account or a 401K account to postpone the due taxes. The company has lost an incredible $38.7 billion in 2007, mostly over a $38.3 billion third-quarter special charge related to unused tax credits.

General Motors Corporation was founded in 1908 and employs almost 300,000 people around the world.