Stellantis to Cut 400 US Jobs, Boost Production of Electric Vehicles

The Italian-American automotive giant, Stellantis, 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 subsidiaries worldwide. The company stated that the layoffs were due to unprecedented uncertainty and increased competitive pressures in the automotive industry, and that they are making structural decisions at a company-wide level to improve efficiency and optimize cost structures.

In recent months, there have been ongoing restructuring efforts within Stellantis to adapt to changing market conditions. In February, it was reported that the company employed 81,341 workers in North America at the end of the previous year, down from 88,835 at the end of 2022. Despite this decrease in staffing levels, Stellantis plans to offer at least 25 battery-electric car models in the US by 2030. This decision aligns with the industry shift towards electric vehicles and underscores Stellantis’ commitment to innovation and sustainability.

Earlier this month, United Auto Workers (UAW) union president criticized the layoffs, attributing them to “corporate greed.” However, according to Stellantis’ latest contract with management, about 3,000 temporary employees were offered permanent jobs. Unfortunately, this did not prevent Stellantis from laying off an additional 2,000 temporary workers in the US recently. Last year, severance pay was offered for voluntary departures in preparation for the transition to electric vehicles. While the exact number of workers who received severance pay was not disclosed publicly

By Aiden Johnson

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