Stellantis (STLA) offering voluntary buyouts to 33,500 U.S. employees

Stellantis (NYSE: STLA) announced Wednesday that the Chrysler parent company is offering voluntary exit packages to 33,500 U.S. employees as it looks to streamline operations.

The automaker did not say how many total jobs it is looking to eliminate. However, the offer covers 31,000 U.S. hourly workers and about 2,500 salaried workers. The company is also offering voluntary buyouts to some employees in Canada.

Stellantis Chief Operating Officer Mark Stewart told employees in an email seen by Reuters that a review of its operations "has made it clear that we must become more efficient."

United Auto Workers (UAW) union President Shawn Fain criticized the effort, saying “"Stellantis’ push to cut thousands of jobs while raking in billions in profits is disgusting. This is a slap in the face to our members, their families, their communities, and the American people who saved this company 15 years ago."

On Tuesday, a local UAW unit said Stellantis wanted to cut approximately 3,500 hourly U.S. jobs in the voluntary offer.

In his email, Stewart said Stellantis needed to continue identifying efficiencies to make its operations more competitive, both inside and outside the company.

"The competition is fierce, and the cost of electrification cannot be passed on to the customer. Make no mistake, we intend to win in the marketplace," he wrote.

In February, Stellantis indefinitely halted operations at an assembly plant in Illinois, affecting about 1,350 workers resulting in indefinite layoffs.

Shares of STLA are up 0.81% in afternoon trading on Wednesday.

By Michael Elkins | [email protected]

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