Stellantis Announces Major Layoffs in U.S. Engineering and Technology Jobs Amid Uncertainty in the Automotive Industry

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

Stellantis, a leading automotive manufacturer with subsidiaries worldwide, has announced that it will be cutting 400 engineering/technology and software jobs in the U.S. on March 31. This decision reflects two percent of the workforce in such positions at the company’s subsidiaries globally. The automotive industry is currently facing unprecedented uncertainty and heightened competition, prompting Stellantis to make structural decisions aimed at enhancing efficiency and optimizing its cost structure.

In response to this announcement, 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, recent developments have seen approximately 3,000 temporary employees secure permanent positions as part of a new contract between UAW and management. 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 management. According to reports, 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. Despite these reductions, Stellantis remains committed to introducing at least 25 battery-electric car models in the U.S. by 2030 as part of its strategic goals.

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