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Ford Rival Stellantis To Offer Worker Buyouts Amid EV Pivot

As automakers pivot toward all-electric vehicles and away from gas-powered models, those entities must also deal with the reality that EVs don’t require as much labor to produce, meaning that job cuts are inevitable. This is true of Ford, which plans to shed around 3,800 jobs in Europe amid its EV pivot there and cut costs by around $8 billion worldwide, as well as General Motors, which recently rolled out an employee buyout plan that 5,000 workers took advantage of. Stellantis is embarking on its own electrification journey as well, one that will also involve offering its workers a buyout, according to the Wall Street Journal.

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These voluntary separation packages will be offered to both hourly and white-collar Stellantis workers, a group that includes salaried employees with at least 15 years experience, according to Mark Stewart, the company’s North American chief operating officer. An email informing workers of this package was sent out this morning, and noted that additional details will be provided next week.

“This is being made in an effort to reduce costs and help fund the automaker’s electrification strategy, Stewart noted in the email. “The competition is fierce, and the cost of electrification cannot be passed on to the customer.” It’s currently unclear how many positions Stellantis will try to reduce, but a spokesperson noted that it’s looking to trim 2,500 salaried workers and 31,000 hourly employees in the U.S. and Canada.

The point of buyout programs such as this one is to give employees a chance to voluntarily exit the company rather than resorting to layoffs, and typically involve some sort of incentives to do so. In the case of GM, that included one month’s pay for every year those workers have been employed at the automaker – for up to 12 months –  as well as a pro-rated bonus, insurance, and outplacement services.

We’ll have more on everything Ford’s competition is up to soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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