Stellantis to cut 3,500 hourly U.S. jobs through buyout, retirement offers, UAW local says

Stellantis aims to cut about 3,500 hourly jobs in the U.S. by offering buyouts and retirement incentives to workers ahead of negotiations with the UAW later this year.

UAW Local 1264, which represents the Stellantis stamping plant in Sterling Heights, Mich., said in a letter to members that the offers would be made “corporate wide.”

Retirement-eligible workers hired before ratification of Chrysler’s 2007 contract with the UAW can receive $50,000 to leave their job, according to the letter, which Local 1264 posted Monday on Facebook. Employees who have been with the company for at least a year would be eligible for a lump-sum benefit payment, the letter said, without specifying how much that would be.

Workers can sign up for either package from May 6 through June 19. Departure dates are tentatively scheduled for June 30 through Dec. 31, depending on each plant’s needs.

The openings would be filled by workers on indefinite layoff, the letter said.

A Stellantis spokesperson didn’t immediately comment on the plan.

The 3,500-job target would represent about 8 percent of the 43,000 hourly workers who were eligible to collect a profit-sharing check from Stellantis in March.

The attrition incentives come as Stellantis prepares to launch 25 electric vehicles in the U.S. by 2030. CEO Carlos Tavares has said that the automaker must find savings as it ramps up production for EVs that are more costly to build than conventional gasoline models.