Stellantis to Cut 400 Jobs in US, Increase Production of Electric Vehicles

Stellantis Announces Layoffs of 400 Engineering/Technology Jobs in U.S. Amid Increased Competition and Changing Consumer Preferences

Stellantis, a global automotive manufacturer, has announced plans to cut 400 engineering/technology and software jobs in the U.S. effective March 31. This decision represents two percent of the workforce in such positions at the company’s subsidiaries worldwide. The automotive industry is facing unprecedented uncertainty and increased competition, prompting Stellantis to make structural decisions to enhance efficiency and optimize its cost structure.

Earlier this month, the United Auto Workers (UAW) union president criticized Stellantis for laying off 2,000 temporary workers in the U.S., attributing the decision to corporate greed. However, the latest contract between UAW and management resulted in approximately 3,000 temporary employees securing permanent positions. Last year, Stellantis offered severance pay for voluntary departures as part of preparations for transitioning to electric vehicles, citing the need to become more efficient.

The exact number of workers offered severance pay has not been disclosed by the management. In February, it was reported that Stellantis employed 81,341 workers in North America at the end of the previous year, a decrease from 88,835 employees at the end of 2022. Stellantis plans to introduce at least 25 battery-electric car models in the U.S. by 2030 as part of its strategic goals.

Stellantis has been facing challenges in recent years due to increasing competition from other automakers and changing consumer preferences towards electric vehicles. The company has been investing heavily in research and development to stay competitive and adapt to these changes.

The layoffs will affect both engineers and technology experts who have worked on various projects related to software development and innovation within Stellantis’ subsidiaries worldwide.

The move by Stellantis is likely seen as a response to these challenges and an effort to streamline operations while reducing costs.

The decision by Stellantis comes after criticism from labor unions regarding layoffs earlier this month.

In February, it was reported that Stellantis employed over 79 thousand workers worldwide with around half of them working outside North America.

This latest announcement marks a significant shift for one of Europe’s largest carmakers as they continue their efforts to adapt to a rapidly changing marketplace while maintaining their position as a global leader in automotive manufacturing.

Leave a Reply

After 5 days, hunger strike to end 24-hour home health aide shifts comes to a close. Previous post End of Five-Day Hunger Strike Marks Continuing Fight for Healthcare Workers’ Rights in New York City
Top Name Trumps: Anyone Other than Biden Next post Unconventional Candidate: 35-Year-Old Texan Runs for President under the Name ‘Literally Anybody Else’ to Protest Mainstream Politicians