Stellantis has said it was offering 6,400 US salaried employees voluntary buyouts as it works to cut costs amid the transition to electric vehicles and agreeing to a new United Auto Workers contract.
According to Reuters, the buyouts would be about half the company’s salaried US employees not represented by a union, which is currently 12,700. Another 2,500 Stellantis US salaried workers are unionised and are not being offered the current buyout.
Salaried employees must have at least five years of experience to be offered a voluntary departure package, the report said. Employees agreeing to take the incentive would depart before the end of December.
Stellantis reportedly said it was taking “necessary structural actions to protect our operations and the company” and cited preparations “for the transition to electric vehicles”.
Reuters noted, in April, Stellantis said it was offering voluntary exit packages to 33,500 US employees. That offer covered 31,000 hourly workers and about 2,500 salaried workers. It also offered some employees in Canada voluntary buyouts.
Stellantis chief operating officer Mark Stewart reportedly told employees in April a review of its operations “has made it clear that we must become more efficient”.
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In October 2022, Reuters added, Stellantis offered voluntary buyouts to US salaried employees who were aged 55 or older and had worked for the automaker at least 10 years.
Under the UAW contract, the company agreed to offer $50,000 buyouts for veteran production and skilled trade members. It would offer buyouts in 2024 and 2026.
Reuters noted Stellantis had said on 31 October it would seek to offset a significant financial hit from strikes in North America that led to big pay increases and was looking at potential cost cuts.
CFO Natalie Knight reportedly said the six week strikes were unexpectedly long and would cost the group in full year 2023 under EUR750m ($800million) in profits and around EUR3bn in revenue.
Stellantis did not provide estimates on extra labour costs it would have to bear in the future, following new agreements with unions in North America, Reuters added.