June 16, 2024

Stellantis Slashes Engineering/Technology Jobs Amid Automotive Industry Uncertainty and Competition

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

Stellantis, a global automotive manufacturer, has announced that it will be cutting 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.

Stellantis, which was formerly known as FCA, has faced criticism from labor unions in recent years for its job cuts and layoffs. 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.

Despite these challenges, Stellantis remains committed to its strategic goals of introducing at least 25 battery-electric car models in the U.S. by 2030. The company believes that this shift towards electric vehicles will help it stay competitive in an increasingly crowded marketplace and position itself for long-term success.

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