Automaker Stellantis is seeking to cut its total U.S. production workforce by about 3,500, and will offer buyouts in early May to begin the downsizing effort. Buyouts also will be offered to an unknown number of salaried workers.
Like General Motors earlier this year, Stellantis is opting to encourage employees to separate themselves “in response to today’s increasingly competitive global market conditions and the necessary shift to electrification,” according to a statement. However, the GM buyouts were addressed only to salaried workers.
Also unlike GM, which is trying to reduce operating costs by $2 billion by the end of 2024, Stellantis has not indicated the total amount of the expense it aims to save.
Stellantis has not indicated whether it will implement involuntary layoffs if the buyout offers do not achieve the savings goals.
The automaker reportedly has close to 56,000 production workers in the U.S., of whom about 33,000 will be offered one of two buyout packages: pension-eligible workers hired prior to the October 2007 United Autoworkers union contract will be offered a $50,000 deal; other workers with at least one year of employment will be offered a package based on their years of service.
The offer to Stellantis salaried workers will target those with 15 or more years of service.
