Stellantis Announces Major Layoffs Amid Automotive Industry Challenges, but Remains Committed to Shift Towards Electric Vehicles”.

Stellantis, an Italian-American manufacturer, has announced plans to cut 400 engineering/technology and software jobs in the US effective March 31. This accounts for two percent of the workforce in such positions at subsidiaries around the world. The company cited unprecedented uncertainty and increased competitive pressures in the automotive industry as reasons for the decision, and stated that it is making structural decisions at a company-wide level to improve efficiency and optimize cost structures.

Earlier this month, the United Auto Workers (UAW) union president criticized the layoffs, attributing them to “corporate greed.” However, Stellantis has been making efforts to adapt to changing market conditions by offering severance pay for voluntary departures last year in preparation for the transition to electric vehicles. The exact number of workers offered severance pay was not disclosed, but according to reports, Stellantis employed 81,341 workers in North America at the end of the previous year, down from 88,835 at the end of 2022.

In addition to these efforts, 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 ongoing restructuring efforts within the company. Despite these challenges, Stellantis remains committed to improving efficiency and optimizing cost structures to remain competitive in the automotive industry.