Lansing, Mich. (Michigan News Source) – Following Stellantis making cuts to temporary workers earlier this year, the company has announced that it would also be laying off hundreds of workers in the engineering and software offices.
According to the maker of Chrysler, Dodge, Jeep, and Ram, the newest round of layoffs would total 400 white-collar workers, estimated at 2% of the entire engineering/tech and software workforce for Stellantis in the United States.
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“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,” Jodi Tinson, Stellantis spokesperson said in a statement.
Workers will get a separation package and help transitioning from the company according to Stellantis.
“While we understand this is difficult news, these actions will better align resources while preserving the critical skills needed to protect our competitive advantage as we remain laser focused on implementing our EV product offensive,” the statement said.
2023 Stellantis layoffs affect hundreds of other workers.
In January, United Auto Workers President Shawn Fain has criticized the company’s decision to terminate 2,000 temporary employees.
“Over the weekend hundreds of supplemental employees were terminated,” according to Fain in a Facebook Live Address. “In our Stand Up Strike, we got the company to convert nearly 3,000 temporary workers to permanent jobs—resulting in life changing raises and benefits for thousands of families.”
UAW President Fain also called upon the company not to bring the “pain to the lowest paid workers.”
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“Stellantis can afford to do the right thing here and provide a pathway to fulltime good auto jobs, but again they’re choosing to line executive and shareholder pockets.”
Holiday Season brought more temporary cuts to Michigan assembly plant.
In December, the company announced plans to temporarily lay off shift workers at the Detroit Stellantis assembly plant which builds Jeep sport utility vehicles. The decision would affect roughly a third of the 4,600 workers at the plant.
Michigan Speaker of the House Joe Tate (D-Detroit) previously expressed his objections to the plan.
“This announcement by Stellantis reducing their workforce is concerning. There is ample opportunity in this state for Michigan workers to thrive and manufacturers to succeed in continuing to build world-class products as the auto industry evolves. Layoffs should be a decision of last resort and I encourage Stellantis to revisit reducing the number of shifts at the Mack Assembly Plant.”
The latest round of layoffs will become effective on March 31, and according to the company,
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