Stellantis Cuts 400 Engineering Jobs Amid Competitive Pressures in Automotive Industry; UAW Union Criticizes Layoffs

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

The Italian-American manufacturer Stellantis has announced that it will be cutting 400 engineering/technology and software jobs in the US effective March 31, which is equivalent to 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.

The United Auto Workers (UAW) union president had earlier criticized the layoffs, attributing them to “corporate greed.” However, Stellantis revealed that about 3,000 temporary employees were offered permanent jobs under its latest contract with the UAW. Despite this, the company still laid off 2,000 temporary workers in the US recently. Last year, Stellantis offered severance pay for voluntary departures in preparation for the transition to electric vehicles. Although they did not disclose the exact number of workers offered severance pay, February reports indicated 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.

As part of its ongoing efforts to adapt to changing market conditions and align with industry trends towards electric vehicles, Stellantis plans to offer at least 25 battery-electric car models in the US by 2030. This decision comes amidst restructuring efforts within

Sophia Reynolds

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