Topline
Automotive giant Stellantis, the maker of Chrysler, Dodge and Jeep, is reportedly offering buyouts to roughly 33,500 U.S. employees in an effort to stave off layoffs that have plagued other major manufacturers in recent months, making it the second major automaker to launch a buyout program this month.
Chrysler, Dodge and Jeep parent company Stellantis plans to offer buyouts to thousands of employees.
Key Facts
Stellantis offered the buyouts to 31,000 hourly blue-collar workers in the U.S. and another 2,500 salaried employees with at least 15 years of service, multiple outlets reported Wednesday.
The automaker—which cut more than 1,000 of its roughly 272,000 employees worldwide in February—did not list how many employees it was looking to cut as part of the buyout program, though United Auto Workers union estimates the company is aiming to reduce its headcount by roughly 3,500 hourly positions.
Chief Operating Officer Mark Stewart told employees in an email obtained by Reuters the move is an attempt to make the company more efficient, saying: “The competition is fierce, and the cost of electrification cannot be passed on to the customer” (Forbes has reached out to Stellantis for comment).
Tangent
General Motors announced earlier this month more than 5,000 of its employees opted for buyouts just weeks after the Detroit-based company offered them, taking on roughly $1 billion in costs. GM—the parent company of Buick, Cadillac, Chevrolet and GMC—offered the buyouts for the majority of its 58,000 salaried employees in the U.S. in an effort to stave off large corporate layoffs that have hit major manufacturing and tech companies in recent months as recession fears loom.
Big Number
3,000. That’s how many employees auto giant Ford cut in August—the largest round of layoffs of any major automaker over the past 12 months. Electric vehicle maker Rivian also underwent two rounds of layoffs over the past year, including its most recent round in February, slashing 6% of its staff (roughly 840 employees), while electric car maker Lucid Group also announced plans last month to lay off 18% of its workforce (1,300 employees).
Further Reading
5,000 GM Employees Take Buyouts In Cost-Cutting Program (Forbes)
Stellantis offering voluntary buyouts to 33,500 US employees (Reuters)
Source: https://www.forbes.com/sites/brianbushard/2023/04/26/stellantis-offers-buyouts-to-33500-employees-latest-automaker-to-cut-costs/