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

Stellantis to Cut Engineering and Technology Jobs Amidst Increased Competitive Pressure in the Automotive Industry.

The Italian-American manufacturer, Stellantis, has announced that it will be cutting 400 engineering/technology and software jobs in the U.S. effective March 31, which is equivalent to two percent of the workforce in such positions at subsidiaries around the world. This decision comes as a result of unprecedented uncertainty and increased competitive pressures in the automotive industry. In order to improve efficiency and optimize cost structures, the company is making structural decisions at a company-wide level.

Earlier this month, the United Auto Workers (UAW) union president criticized the layoffs, attributing them to “corporate greed.” However, Stellantis has stated that it is committed to creating long-term value for its stakeholders and that these cuts are necessary for the company’s future success.

Last year, Stellantis offered severance pay for voluntary departures in preparation for the transition to electric vehicles. The exact number of workers offered severance pay was not disclosed, but in February it was reported that Stellantis 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 decline in employment numbers, Stellantis remains committed to investing in its workforce and developing new technologies.

In fact, the company plans to offer at least 25 battery-electric car models in the US by 2030, aligning with the industry shift towards electric vehicles. This decision comes amidst ongoing restructuring efforts within the company to adapt to changing market conditions and position itself for long-term success.

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