Stellantis (STLA) to cut 3,500 U.S. jobs

According to a United Auto Workers union letter made public Tuesday, Chrysler and Dodge parent company Stellantis (NYSE: STLA) wants to cut approximately 3,500 hourly U.S. jobs and is offering voluntary exit packages.

According to the letter, The automaker is looking to reduce its hourly workforce offering incentive packages that include $50,000 payments for workers hired before 2007. However, A person briefed on the matter said the figure might be lower than the figure cited in the UAW letter.

In late February, Stellantis indefinitely halted operations at an assembly plant in Illinois, citing rising costs of electric vehicle production. The action impacted about 1,350 workers at the Belvidere, Illinois, plant that built the Jeep Cherokee SUV and resulted in indefinite layoffs. The automaker has warned it may not resume operations as it considers other options.

Last week, UAW President Shawn Fain said Stellantis' decision to idle the Illinois plant was "a flat-out violation" of the union's contract with the UAW and is unacceptable.

The UAW will enter talks with automakers before labor contracts expire in September.

Shares of STLA are up 0.25% in pre-market trading on Wednesday.

By Michael Elkins | [email protected]

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