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News » 400 U.S. tech workers axed at Stellantis amid outsourcing fears

400 U.S. tech workers axed at Stellantis amid outsourcing fears

400 workers axed at Stellantis
Photo from Reuters

MICHIGAN, UNITED STATES — Automobile manufacturer Stellantis has recently terminated 400 of its technology workers in the United States, triggering widespread concern over potential outsourcing and the broader challenges facing the automotive industry.

The workers in question were salaried, nonunion employees in technology and engineering in the U.S. 

The affected employees were abruptly emailed and told not to come to work, leading to a mandatory meeting at which they learned of their job terminations.

A mechanical engineer, preferring to remain anonymous, shared his shock with the media, stating that the news “felt like a punch in the gut.” 

This sentiment was echoed by many of his colleagues, who found themselves suddenly unemployed after years of service.

Stellantis defended the firings as a strategic necessity “to improve efficiency and optimize our cost structure.” The firm had previously reported a 10.9% loss in hourly worker time from unplanned absences.

The company also maintained that its decision was necessary to “better align resources while preserving the critical skills needed to protect our competitive advantage.” 

A statement to FOX 2 Detroit also highlighted Stellantis’ commitment to its electric vehicle (EV) product offensive and the Dare Forward 2030 strategic plan as part of this alignment.

However, speculation among employees and industry experts suggests that the layoffs may be more closely related to outsourcing efforts. Some of the firm’s workers revealed that Stellantis has been increasingly relocating jobs to countries like India, Mexico, and Brazil, aiming for cost efficiency and profitability.

The mass layoffs have raised significant concerns about the future of the auto industry, particularly regarding the expensive shift towards electrification and the implications of new United Automobile Workers (UAW) contracts

Critics argue that Stellantis’s actions reflect a broader trend of job cuts within the sector, signaling a period of significant transformation.

News portal WebProNews said that the layoffs were particularly hard to swallow for the affected employees, considering the government bailout Stellantis — then part of Fiat Chrysler — received during the financial crisis. 

Read more here.

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