For the third time in a year, Stellantis (NYSE:STLA) is letting go of another 400 U.S. employees as it continues to cut costs in the highly competitive electric vehicle market.
The cuts will come in engineering, technology and software according to an internal note displayed by The Wall Street Journal. The memo urged non-union employees to work from home on Friday ahead of “important operational meetings” that will notify which employees will be affected by the layoffs.
Last November, the automaker offered buyouts to nearly half of its white-collar workforce following its new contract with the United Autoworkers union. The UAW secured a 25 percent raise over four years along with rising costs of living and gave union members the right to strike over plant closings.
“As the U.S. auto industry continues to face challenging market conditions, Stellantis is taking the structural actions necessary to protect our businesses,” a company spokesperson said at the time of the November acquisition.
In December, Stellantis ( STLA ) said it would reduce the number of shifts at its Detroit Jeep plant and cut jobs at its Toledo plant, blaming the decision, in part, on California emissions regulations and declining sales of Jeep.
And a month later, the company cut 600 jobs at a French factory due to an “uncertain European market.” At the time, Stellantis CEO Carlos Tavares said the automaker would not engage in a price war with EV rivals, avoiding a “race to the bottom.”