Chrysler parent Stellantis STLA-N said on Friday it will lay off about 400 U.S. salaried workers as it seeks to cut costs, boost efficiency and ramp up electric-vehicle production plans.
The Italian-American automaker said it is reducing its engineering/technology and software organizations by about 400 U.S. jobs effective March 31, which represents 2 per cent of those jobs worldwide. Last year, Stellantis twice offered buyouts to groups of U.S. workers, including giving 6,400 U.S. salaried employees a financial incentive to depart in November.
The company said, “As the auto industry continues to face unprecedented uncertainties and heightened competitive pressures around the world, Stellantis continues to make the appropriate structural decisions across the enterprise to improve efficiency and optimize our cost structure.”
Both Ford Motor and General Motors have vowed further cost costs and cut some jobs over the last year.
Earlier this month, United Auto Workers President Shawn Fain said Stellantis had terminated 2,000 temporary workers, criticizing the decision as “about corporate greed.” He noted that under the UAW contract reached with Stellantis last, around 3,000 temporary workers were converted to permanent jobs.
Stellantis in December said it would temporarily cut one shift at its Detroit assembly plant that builds Jeep sport utility vehicles and reduce production at its Toledo, Ohio, assembly plant that builds the Jeep Wrangler.
Stellantis cited preparations “for the transition to electric vehicles” last year in offering buyouts after telling employees earlier that a review of the company’s operations “made it clear that we must become more efficient.”
Stellantis plans to offer at least 25 battery-electric models in the United States by 2030.
The company did not disclose how many employees offered to take buyouts but said in February its North American workforce had fallen to 81,341 at the end of 2023, compared with 88,835 a year earlier.
Under the UAW contract, the company agreed to offer $50,000 buyouts for veteran production and skilled trade members in 2024 and 2026.