Aiexpress – A massive corporation has recently announced unexpected layoffs in Michigan, marking the third staff cut in only one year.
Stellantis, Chrysler’s parent company, has announced another wave of layoffs, this time affecting some 400 employees in the United States.
According to Global Village Space, the job layoffs will mostly effect personnel in engineering, technology, and software responsibilities at the company’s headquarters and technical center in Auburn Hills, Michigan.
The decision to lay off workers is in response to the automobile industry’s current uncertainty and severe rivalry.
According to a previously prepared statement, “As the auto industry continues to face unprecedented uncertainties and heightened competitive pressures around the world, Stellantis continues to make the appropriate structural decisions across the enterprise to improve efficiency and optimize our cost structure.”
The layoffs will begin on March 31 and will affect approximately 2% of Stellantis’ U.S. staff in engineering, technology, and software.
However, the corporation has guaranteed concerned employees that they would be given a parting compensation and transition help.
While the layoffs may be tough for the impacted employees, Stellantis underlined that they are vital to align resources and protect critical capabilities.
The company remains focused on implementing its EV product offensive and maintaining its market competitiveness.
Carlos Tavares, CEO of Stellantis, has spoken out about the difficulty of making EVs affordable to the middle class.
He has consistently maintained that electric vehicles are 40% more expensive to produce than gasoline-powered automobiles. To overcome this issue, Tavares feels cost-cutting measures are required.
Stellantis is continuously looking for ways to increase efficiency and lower costs in order to make EVs more affordable to consumers.
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