Stellantis Offers Employee Buyout Packages to Fund EV Expansion

Stellantis announced offering buyout packages to employees to reduce operational expenses to help fund EV growth plans. The company plans to reduce nearly 3,500 employees by offering packages worth up to $50,000 depending on seniority. With plans to invest $35 billion into the EV space over the coming years, Stellantis is seeking ways to reduce operational expenses to avoid adding costs to consumers. With tight market competition in the EV space, Stellantis is one of several other groups to take this cost-cutting measure. For example, GM recently announced offering similar buyout packages to 5,000 employees, reducing costs by around $2 billion by 2024. These packages come ahead of negotiations between Ford, GM, and Stellantis with United Auto Workers for new labor agreements.