Stellantis is offering voluntary buyouts to 33,500 U.S. employees in order to cut costs and streamline operations, Reuters reports.
The manufacturer for Jeep, Chrysler and other General Motors (GM) products offered contract buyouts to 31,000 U.S. hourly employees and 2,500 salaried workers, Reuters reported Wednesday. The automaker has not said how many jobs it is looking to cut in total, but the company is also extending the voluntary buyout offers to some hourly workers based in Canada, according to the outlet. The voluntary separation packages are reportedly being offered to employees with at least 15 years of service.
Chief Operating Officer Mark Stewart said a recent operations review “has made it clear that we must become more efficient,” according to a company-wide email to employees obtained by Reuters. “The competition is fierce, and the cost of electrification cannot be passed on to the customer. Make no mistake, we intend to win in the marketplace.” (RELATED: General Motors To Stop Making Sixth-Generation Camaro)
“Stellantis’ push to cut thousands of jobs while raking in billions in profits is disgusting,” United Auto Workers (UAW) union president Shawn Fain said in a statement Tuesday. “This is a slap in the face to our members, their families, their communities, and the American people who saved this company 15 years ago.”
A letter from Fain said Stellantis was looking to cut the company’s hourly workforce by a total of 3,500 employees, according to The Detroit News. The alleged cuts would be a response to rising costs stemming from the automaker’s shift to electrification and rising market competition, the outlet reported.
FILE PHOTO: Stellantis CEO Carlos Tavares holds a news conference after meeting with unions, in Turin, Italy, March 31,2022. REUTERS/Massimo Pinca/File Photo
“These voluntary programs are being offered to provide a favorable option to employees looking to pursue new opportunities, while preserving critical roles the Company needs in order to maintain its competitive advantage,” Stellantis spokesperson Shawn Morgan told The Detroit News.
GM offered its employees a similar program in March, with 5,000 employees opting in to the buyout, CNBC reported April 4. GM CFO Paul Jacobson made the announcement at a Bank of America Securities meeting as the company was looking into various restructuring tactics at the time. GM is aiming to eliminate roughly $2 billion in structural expenses through 2024, according to the outlet.
Stellantis did not immediately respond to the Daily Caller’s request for comment.