Robert Besser
04 May 2023, 01:46 GMT+10
DETROIT, Michigan: As part of efforts to streamline its operations, Chrysler's parent company, Stellantis NV, offered voluntary resignation packages to 33,500 US employees, covering 31,000 hourly workers and some 2,500 salaried workers.
Stellantis is also offering some employees in Canada voluntary exits, but it has not confirmed the total number of positions it plans to eliminate.
Reuters reported that Stellantis Chief Operating Officer Mark Stewart emailed employees to tell them that a review of its operations "has made it clear that we must become more efficient."
Additionally, the company must continue identifying efficiencies to make its operations more competitive, Stewart wrote in the email.
"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 said.
However, the decision was criticized by United Auto Workers union President Shawn Fain.
"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," Fain said.
"The voluntary redundancy packages are being offered to salaried US employees who have 15 or more years of service and work in certain organizations," Stellantis said.
"Stellantis wants to cut approximately 3,500 hourly US jobs in the voluntary offer," a local UAW official said this week.
Citing rising EV production costs, Stellantis indefinitely halted operations at its Belvidere assembly plant in Illinois in February, which affected some 1,350 workers who built the Jeep Cherokee SUV, resulting in indefinite layoffs.
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