According to Reuters, on March 22, automaker Stellantis announced it would cut around 400 salaried positions in the United States to reduce costs, improve efficiency, and accelerate its electric vehicle production plans.
Starting from March 31, Stellantis will cut about 400 engineering/technical and software positions in the United States. Last year, the company offered buyout plans twice to American workers, including offering financial incentives to 6,400 salaried employees to leave in November.
Stellantis stated, "As the automotive industry continues to face unprecedented uncertainty and increased global competitive pressures, Stellantis will continue to make appropriate structural decisions across the enterprise to improve efficiency and optimize our cost structure." Apart from Stellantis, Ford and General Motors both stated last year their intentions to further cut costs and reduce their workforce.
Earlier this month, United Auto Workers (UAW) President Shawn Fain stated that Stellantis had already laid off 2,000 temporary workers and criticized the decision as "corporate greed." Fain noted that under the contract between UAW and Stellantis, about 3,000 temporary workers were converted to permanent positions.
In December last year, Stellantis announced temporary shifts reduction at its Detroit Jeep assembly plant and reduced production at its Toledo Jeep Wrangler plant in Ohio. When offering buyout plans last year, Stellantis stated it was preparing for the "transition to electric vehicles." Prior to this, the company informed employees that a review of its operations "clearly indicates that we must improve efficiency." According to Stellantis' plans, by 2030, it will offer at least 25 pure electric vehicle models in the United States.
However, Stellantis did not disclose how many employees accepted the buyout plans, but in February, it stated that its North American workforce had reduced to 81,341 people by the end of 2023, compared to 88,835 people in the same period the previous year.
As per the contract signed with UAW, Stellantis agreed to provide $50,000 buyout plans to experienced production workers and skilled trades workers in 2024 and 2026.
