Stellantis Plans Buyouts To Hourly, Salaried Workers To Cut Costs: Report

Stellantis NV STLA plans to provide buyout packages to white-collared and hourly workers in a cost-cutting initiative.
The Jeep maker’s latest move is focused on funding its transition to electric vehicles, the WSJ reported.
The company said it would offer voluntary separation packages to certain salaried employees with a minimum of 15 years of experience.
“The competition is fierce, and the cost of electrification cannot be passed on to the customer,” the report quoted an email to employees by North American chief operating officer Mark Stewart.
Stellantis looks to reduce the hourly workforce by about 3,500 employees.
While factory workers with seniority could be paid $50,000, employees who have spent at least one year would receive a lump-sum settlement.
The report further noted the buyout offers will be available from May 6 through June 19.
The move comes as the car manufacturer, along with General Motors Company GM and Ford Motor Co F, prepare to enter into labor talks with the United Auto Workers for new four-year labor agreements.
Price Action: STLA shares are trading higher by 1.80% at $16.39 on the last check Thursday.