Chrysler (Stellantis) has laid off nearly 400 workers in the United States

A decline in engineering/technology and software

Stellantis said it is cutting its engineering/technology and software workforce by about 400 positions in the United States as of March 31, representing 2% of those jobs worldwide.

A spokesman for the automaker declined to comment on the exact number of laid-off workers. A source close to the matter confirmed there were about 400 employees, a figure first reported Friday by the Wall Street Journal.

Incentives to leave

Stellantis twice last year offered buyouts to groups of US employees, including providing financial incentives for 6,400 US workers to leave the company in November.

The company did not disclose how many employees have accepted the buyout, but it said in February that its North American workforce was down to 81,341 by the end of 2023, from 88,835 a year earlier. Under the UAW contract, the company agreed to provide $50,000 in buyouts to former manufacturing and skilled trades employees in 2024 and 2026.

Unprecedented uncertainty

The manufacturer further said: “As the automotive industry continues to face uncertainty and pressure from increased competition worldwide, Stellantis continues to make the right structural decisions across the company to improve efficiency and optimize its cost structure.

In December, Stellantis announced it would temporarily eliminate shifts at its Detroit assembly plant, which makes Jeep SUVs, and reduce production at its Toledo, Ohio, assembly plant, which makes the Jeep Wrangler.

Stellantis spoke last year of preparations for a “transformation of electric vehicles” by offering to buy after previously telling employees that a review of the company’s operating areas had clearly shown that employees needed to “be more efficient.” The group plans to offer at least 25 models of fully electrified in the United States by 2030.

“Dare Forward 2030” strategic plan

The move is the latest by Stellantis CEO Carlos Tavares to cut costs through layoffs, buyouts and other tactics since the company was created through the merger of Fiat Chrysler and French car group PSA in 2021.

The cuts are part of the drive to implement Stellantis’ Dare Forward 2030 strategic plan, which aims to double the company’s profits and revenue to $300 billion.

“While we understand this announcement is difficult, these steps will better align resources while retaining the critical skills needed to protect our competitive advantage as we remain focused on delivering on the impact of our electric products and our Dare Forward 2030 strategic plan,” the company said. .

Our opinion, for leblogauto.com

Ford and General Motors plan to further cut costs and cut some jobs.

Earlier this month, United Auto Workers President Shawn Fain said Stellantis had laid off 2,000 part-time workers, criticizing the decision as “driven by corporate greed.” He noted that under the UAW contract with Stellantis last year, about 3,000 temporary workers were converted to permanent jobs. Sources: Reuters, Stellantis, CNBC