Stellantis, the parent company of Chrysler, stated on Monday that it is offering voluntary buyouts to 6,400 US-salaried employees. The company is also working to cut its costs as there is a transition to electric vehicles. Furthermore, the company is also agreeing to a contract by the autoworker’s union, UAW.
According to Yahoo Finance,
“The buyouts would be about half the company’s salaried U.S. employees not represented by a union, which is currently 12,700. Another 2,500 Stellantis U.S. salaried workers are unionized and are not being offered the current buyout. Salaried employees must have at least five years of experience to be offered a voluntary departure package.”
Here, the employees who are agreeing to take the incentive would depart before December’s end. Stellantis also said that it is taking essential actions at the structural level to protect its company operations. Furthermore, it also cited preparations for the transition to electric vehicles due to a high demand for the latter.
In April, Stellantis informed that it was offering voluntary exit packages to 31K US Hourly workers and 2.5K salaried workers. The company also offered some employees in Canada with voluntary buyouts.
Furthermore, under the UAW contract, Stellantis also agreed to offer $50K buyouts for veteran production and skilled trade members. Those buyout offers will come in 2024 and 2026.
Natalie Knight, the CFO of Stellantis, stated that the six-week strikes were unexpectedly long. It would cost the group almost $800 million euros in profitability and close to 3 billion euros in revenue. On the other hand, Stellantis is yet to provide estimates regarding extra labor costs it will have to bear in the future.
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