Stellantis offers buyouts to approximately half of salaried employees in the United States
Stellantis, one of The Big Three automakers in the United Stateson Monday offered buyouts to nearly half of its salaried employees as it looks to cut costs as it transitions to electric vehicles (EVs) and take on rising costs from a new union contract.
The parent company of major auto brands like Chrysler, Dodge, Jeep and Ram has offered voluntary buyouts to about 6,400 of its 12,700 employees who are not represented by a union and have at least five years of experience. Employees who accept the incentive will leave the company before the end of December. Stellantis has an additional 2,500 paid union members who are not being offered a current buyout.
“As the U.S. auto industry continues to face challenging market conditions, Stellantis is taking the necessary structural measures to protect our operations and the company,” it said in a statement on Monday. “As we prepare to move to Electric carStellantis announced today that it will offer a voluntary separation package to assist unrepresented employees who wish to separate or retire from the company to pursue other interests with a favorable package of benefits.
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The company added that it remains committed to its “Dare Forward 2030” strategy, which includes the launch of eight new electric cars.
Stellantis said on October 31 that it is looking to offset the financial hit from United Auto Workers (UAW) strikes in the United States through potential post-strike cost reductions. Temporary employment agreement The company reached out to the UAW brought significant pay increases.
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Under the tentative agreement, which is currently being ratified by union members, Stellantis will gradually raise UAW member wages by 25% over the new four-and-a-half-year contract.
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Chief Financial Officer Natalie Knight said the six-week strikes were unexpectedly long and could cost the company less than $800 million in profitability in 2023. The company did not provide estimates on the additional labor costs it will incur under the temporary labor agreement. .
The voluntary buyouts are the latest to be offered by Stellantis after the company in April offered exit packages to 33,500 U.S. employees, including 31,000 hourly workers and 2,500 salaried workers. It also offered buyouts to some of the company’s employees in Canada.
In October 2022, Stellantis offered buyouts to U.S. salaried employees who are 55 or older and have worked at the company for at least 10 years.
Reuters contributed to this report.
Original article source: Stellantis offers buyouts to approximately half of salaried employees in the United States