Stellantis Offers Buyouts in Latest Big-Three Cuts

Chrysler parent Stellantis is offering buyout packages to half of its U.S. salaried workers in its second round of employee cuts since April as it targets savings to prepare for electric-vehicle production, absorb recent union wage hikes, and position itself to weather challenging economic conditions.

The approximately 6,400 workers can opt to leave the company or retire early, according to news reports. They must have at least five years of experience to qualify for a buyout.

In April, Stellantis offered buyouts to more than 33,000 workers, mostly in the U.S., as it targeted a workforce reduction of about 3,500.

Stellantis, one of the “big three” automakers in the U.S., though it’s headquartered in Amsterdam, agreed to a new United Auto Workers union contract last month that includes 25% wage increases, as did the other two Detroit-area automakers. UAW President Sean Fain said Stellantis planned to add 5,000 jobs, while before the strikes it had targeted 5,000 job cuts.

Ford and General Motors, which round out the big three, have also cut their workforces this year. Ford announced layoffs in February and June. GM offered buyouts to most salaried employees in March to help cut $2 billion in costs, and later in the spring moved to eliminate hundreds of contracted positions.

LEARN MORE: Ford Targets More Worker Cuts

Originally posted on Auto Dealer Today