Chrysler-Parent Stellantis Offering Buyouts to 33,500 U.S. Employees

David Dee Delgado | Reuters
  • Stellantis said it will offer buyouts to 31,000 hourly employees and 2,500 salaried non-union U.S. employees.
  • The global automaker is attempting to cut costs and headcount.
  • The buyouts are the latest cuts for the U.S. auto industry.

DETROIT – Stellantis is offering voluntary buyouts to about 33,500 U.S. employees, as the global automaker attempts to cut costs and headcount.

The buyouts will be offered to 31,000 hourly employees with at least one year of employment and 2,500 salaried, non-union employees who have 15 or more years with the company, the automaker said Wednesday. The company is also extending buyout offers to some employees in Canada, but did not disclosed how many.

"In response to today's increasingly competitive global market conditions and the necessary shift to electrification, Stellantis is thoroughly reviewing its North American operations to improve efficiency, reduce costs and protect the competitiveness of our products to allow for further strategic investments to support our transformation," Stellantis said in a statement.

The buyouts are the latest cuts for the auto industry. General Motors earlier this year offered buyouts to a majority of its salaried employees following performance-related layoffs, while Ford Motor recently announced significant job cuts in Europe.

Stellantis earlier this year also idled a Jeep plant in Illinois, placing about 1,200 workers on indefinite layoffs. Those employees will be given the first chance to fill needed positions that are vacated through the buyouts.

Two different offers will be given to union-represented employees based on their seniority, including $50,000 for pension-eligible employees hired before an October 2007 contract agreement between the company and United Auto Workers union. The other buyout program will be offered to workers with at least one year of service, with payments based on their years of employment.

A local UAW unit on Tuesday said Stellantis wants to cut approximately 3,500 skilled and production jobs in the voluntary offer.

UAW President Shawn Fain called the company's plans to reduce its hourly workforce, even through voluntary buyouts, a "slap in the face."

"Stellantis' push to cut thousands of jobs while raking in billions in profits is disgusting," Fain said in a statement.

A spokeswoman for Stellantis declined to comment on whether the automaker plans to conduct involuntary layoffs if not enough employees take the buyout offers. The company has about 56,000 workers in the U.S. 

Roughly 5,000 salaried GM employees opted for its buyout program, which was offered to a majority of the company's 58,000 white-collar employees.

Copyright CNBCs - CNBC
Contact Us