Stellantis is looking to cut roughly 3,500 jobs by offering buyouts to some 33,500 of its hourly and salaried employees in the United States.
News about the intended job cuts first came earlier in the week when the UAW Local 1264 union shared a letter online regarding the buyouts. Speaking with Bloomberg, Stellantis spokeswoman Jodi Tinson said the buyouts have been offered to 31,000 hourly employees and 2,500 salaried employees.
The Detroit Free Press says two incentive packages are being offered to workers. This includes a payment of $50,000 for seniority members who were hired by 2007. It is understood that the cuts will happen between June 30 and December 31 and that openings will be filled by employees on indefinite layoff.
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“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,” a statement from Stellantis confirmed. “Voluntary separation packages are being offered to designated non-represented U.S. employees who have 15 or more years of service and work in certain organizations.”
UAW president Shawn Fain isn’t happy with the planned job cuts.
“[The cuts are] a slap in the face to our members, their families, their communities and the American people who saved this company 15 years ago,” he said. “Even now, politicians and taxpayers are bankrolling the electric vehicle transition, and this is the thanks the working class gets. Shame on Stellantis.”
Fain took particular issue with the cuts given that Stellantis made almost $18 billion in net profit in 2022 while chief executive Carlos Tavares walked home with almost $25 million.
“Stellantis’ push to cut thousands of jobs while raking in billions in profits is disgusting,” Fain added.
