Stellantis Announces Layoffs of 400 Engineering/Technology Jobs in the US, Prompted by Increased Competition and Uncertainty in the Automotive Industry

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

Stellantis, a global automaker with operations in the U.S. and Europe, 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.

The latest round of layoffs comes just weeks after 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, last year’s collective bargaining agreement between UAW and management resulted in approximately 3,000 temporary employees securing permanent positions. In recent years, Stellantis has offered severance pay for voluntary departures as part of preparations for transitioning to electric vehicles, citing the need to become more efficient.

Despite this announcement, Stellantis plans to continue investing heavily in electric vehicle technology and aims to introduce at least 25 battery-electric car models in the U.S. by 2030 as part of its strategic goals. The company currently employs over 81,000 workers globally and is committed to creating new job opportunities while also focusing on cost optimization efforts to stay competitive in an increasingly challenging market environment.

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