Stellantis Slashes Engineering Jobs Amid Increased Competition in the Automotive Industry

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

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 automotive industry is facing unprecedented uncertainty and increased competition, prompting Stellantis to make structural decisions to enhance efficiency and optimize its cost structure.

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. However, earlier this month, 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. 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 management. Despite this criticism from UAW president Dennis Williams, last year’s contract between UAW and management resulted in approximately 3,000 temporary employees securing permanent positions at FCA US LLC (Stellantis’ American subsidiary). In February 2023, it was announced that Stellantis plans to introduce at least 25 battery-electric car models in the U.S by 2030 as part of its strategic goals and efforts to keep up with increased competition in the automotive industry.

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