The automaker is leaning up as the entire industry shifts toward electrified vehicles.
On Monday, Stellantis announced it would offer buyout packages to roughly 6,400 nonunion employees. It is opening up the offer to trim down its payroll in order “to protect our operations and the company”.
The company further said such buyouts will free up capital to help pivot toward electrification, as the whole industry invests tens of billions of dollars for that purpose. Currently, Stellantis has about 12,700 nonunion members, whom are not affected by the recent negotiations with the United Auto Workers (UAW). The automaker last aimed to lay off 3,500 people in April, though it’s not clear how many people took buyouts during that period.
Depending on how long non-union workers have been with Stellantis, they’ll get increasingly generous severance if they choose to leave. Those with at least five to nine years will get three months of base pay, while those with 10-14 years will get six months. Workers with 15-19 years will get nine months, while those with 20 or more years will get a full year of pay. That comes with what the company says is a “favorable benefits package” to encourage those 6,400 to take the offer.
In the first half of 2023, Stellantis posted a net income of around $12 billion. The 44-day UAW strike reportedly cost it $750, however, while the company pledged to invest $19 billion in American manufacturing through 2028.
