Chrysler Stellantis owner offers to buy out some US employees

The sign is visible outside the FCA US LLC headquarters and technology center as it was changed to Stellantis on January 19, 2021 in Auburn Hills, Michigan. – Newly formed European automaker Stellantis went public on the Paris and Milan stock exchanges on January 18, 2021. Created from the merger of French PSA and US-Italian rival Fiat Chrysler, Stellantis is the world’s fourth-largest automaker in terms of sales. (Photo by JEFF KOWALSKI/AFP) (Photo by JEFF KOWALSKI/AFP via Getty Images)

JEFF KOWALSKY | AFP | Getty Images

DETROIT is the parent company of Jeep and Chrysler stellantis is offering a buyout to some of its 13,000 U.S. employees as the automaker tries to cut jobs and refocus its workforce on electric vehicles and software services.

To be eligible for the program, employees must be at least 55 years old and have been with the company for 10 years, or have 30 years of service and have a pension. Employees were notified of the buyout offers on Friday. They have until December 5 to make a decision.

A spokesman for Stellantis declined to say how many home workers are eligible for the program, or whether the automaker has a target for how many workers it would like to receive in packages.

“As part of our transformation to become a sustainable technology mobility company and a market leader in low emissions vehicles, in October we offered select U.S. employees the opportunity to voluntarily leave the company with a lucrative package of benefits that would otherwise case would not be available. available to them,” she said in an emailed statement.

The automaker, formed from the merger of Fiat Chrysler and French Groupe PSA in January 2021, offered similar buyouts to retirees a year ago. He gave similar reasons for these buyout offers.

Stellantis is at least the second Detroit automaker this year to look to cut workforce as companies spend billions of dollars on electric vehicles and new software services.

Ford Motor said in August it was cutting a total of 3,000 paid and contract jobs, mostly in North America, as the automaker tries to lower costs as part of a restructuring effort led by CEO Jim Farley.

The largest automaker in the country General Motorsmade such cuts in past years, but not in 2022. GM chief financial officer Paul Jacobson said Tuesday that the company “does not plan any major layoffs.”

“At the beginning of the year, we did announce that we were slowing down hiring and only replacing key layoffs or critical needs,” Jacobson told reporters while discussing GM’s third-quarter earnings. “It was an attempt to make sure we slow down the rate of headcount growth and make sure we actively position ourselves.”

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