In response to the unprecedented uncertainty and increased competition in the automotive industry, Stellantis, an Italian-American 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 United Auto Workers (UAW) union president earlier this month 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. Stellantis plans to introduce at least 25 battery-electric car models in the U.S. by 2030 as part of its strategic goals.
