Stellantis axes about 400 salaried positions as it grapples with EV transition

Stellantis is finalizing plans to shed its workforce in the US. About 400 salaried positions will be affected as the automaker comes to terms with the uncertainties of its EV transition.

About 2 percent of Stellantis’ staff will be made redundant as the auto conglomerate restructures its operations to improve its profit margin during its transition from ICE to e-mobility. The affected staff are mainly from its engineering, technology, and software units at its Michigan headquarters.

Stellantis has promised the ex-workers a severance package and transition assistance.

A statement from the company reads, “As the auto industry continues to face unprecedented uncertainties and heightened competitive pressures around the world, Stellantis continues to make the appropriate structural decisions across the enterprise to improve efficiency and optimize our cost structure.”

Stellantis, the third largest automaker globally, tried to close down its Belvidere factory in Illinois in 2022, potentially putting 1,350 people out of jobs but backed down after pushback from the United Auto Workers union.

Meanwhile, Stellantis is looking to launch 18 new electric models worldwide this year across its brands, including Jeep, Chrysler, Dodge, and Ram, with eight of them to be available in the US. However, these US-focused EVs will need adapters to use Tesla’s Superchargers as Stellantis will only start adding NACS charging ports to its cars in 2025. Existing EV owners will be provided with the adapter.

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