- Chrysler parent company Stellantis will offer buyouts to about half of its U.S. employees as it seeks to reduce headcount and reduce costs for the automaker’s North American operations.
- The voluntary separation packages will be offered to 6,400 of its 12,700 non-negotiating U.S. employees, the company said Monday.
- This is the second round of wage-earner buyouts for Stellantis this year and comes weeks after the automaker reached a tentative deal with the UAW for unionized workers.
Carlos Tavares, Chief Executive Officer of Stellantis, poses during a presentation at the New York International Auto Show in Manhattan, New York City, April 5, 2023.
David Dee Delgado | Portal
DETROIT – Chrysler parent company Stellantis is offering buyouts to about half of its U.S. employees as it seeks to reduce headcount and cut costs for the automaker’s North American operations.
The voluntary separation packages will be offered to 6,400 of its 12,700 non-negotiating U.S. employees with five or more years of employment, the company said Monday.
The move marks the U.S. auto industry’s latest cost-cutting efforts, as companies seek to cut costs amid economic concerns and billions of dollars in new investments in new technologies such as electric vehicles. Both General Motors and Ford Motor also made job cuts last year.
“As the U.S. automotive industry continues to face challenging market conditions, Stellantis is taking the necessary structural actions to protect our operations and the company,” Stellantis said in an emailed statement. “As we prepare for the transition to electric vehicles, Stellantis announced today that it will offer a voluntary exit package to help those unrepresented employees who wish to separate from the company or retire with a competitive benefits package. to pursue other interests.”
A Stellantis spokeswoman declined to comment on how many employees or overall costs the company plans to save. She also declined to comment on whether involuntary layoffs are planned if not enough employees accept the buyouts.
Mark Stewart, chief operating officer of Stellantis North American, briefed employees on Monday about the program, which was first reported by The Wall Street Journal.
The company said employees had until December 8th to accept takeover offers.
This is the second round of paid acquisitions for Stellantis this year. In April, the company expanded voluntary buyouts to approximately 33,500 U.S. employees, including 31,000 hourly workers with at least one year of employment and 2,500 salaried, non-union employees who have been with the company for 15 or more years.
The latest acquisitions come weeks after the automaker reached a tentative deal with the United Auto Workers for new labor contracts for its 43,000 union workers.
The tentative agreement between Stellantis and the UAW, which still needs to be ratified by union members, also provides for voluntary buyouts.
The UAW has stated that the voluntary retirement incentive plan will provide $50,000 before taxes for an unlimited number of eligible manufacturing and craft members in 2024 and again in 2026.
The Stellantis spokeswoman said the employee buyout offers were not directly related to the expected increase in U.S. labor costs as a result of the UAW deal.
The tentative union agreement calls for wage increases of 25%, including 11% upon ratification; reintroducing cost of living adjustments; additional contributions for pensioners; new investments worth billions; and other benefits.