This February Ford cut 3,800 jobs, according to CNN, “citing difficult economic conditions and its major push toward electric vehicles… The veteran automaker said the layoffs were primarily triggered by its transition to electric vehicles, and a reduction in ‘vehicle complexity.'”
Then in March GM also “unexpectedly cut several hundred jobs to help it trim costs and form a top-tier workforce to guide its transition to an all-electric car company,” according to the Detroit Free Press — while later also announcing buyouts to try to “accelerate attrition.” A spokesperson explained that GM wanted “to reduce vehicle complexity and expand the use of shared systems between its internal combustion engine and future electric vehicle programs.”
Up next is Stellantis, the multinational automotive giant formed when Fiat-Chrysler merged with PSA Group in 2021. It’s now “trying to cut its workforce to trim expenses and stay competitive,” reports the Associated Press, “as the industry makes the long and costly transition to electric vehicles.”
Stellantis on Wednesday said it’s offering buyouts to groups of white-collar and unionized employees in the U.S., as well as hourly workers in Canada. The cuts are “in response to today’s increasingly competitive global market conditions and the necessary shift to electrification,” the company said in a prepared statement.
Stellantis said it’s looking to reduce its hourly workforce by about 3,500, but wouldn’t say how many salaried employees it’s targeting. The company has about 56,000 workers in the U.S., and about 33,000 of them could get the offers. Of those, 31,000 are blue-collar workers and 2,500 salaried employees. The company has another 8,000 union workers in Canada, but it would not say how many will get offers…
The offers follow Ford and General Motors, which have trimmed their workforces in the past year through buyout offers. About 5,000 white-collar workers took General Motors up on offers to leave the company this year. Ford cut about 3,000 contract and full-time salaried workers last summer, giving them severance packages.
The article adds that Shawn Fain, the new president of the United Auto Workers union, has told reporters “that he’s unhappy with all three companies” over attempts to unionize “new joint-venture factories that will make battery cells for future electric vehicles.”
The Detroit Free Press has specifics:
He said, for instance, that the wages are lower at the GM and LG Energy Solution Ultium Cells joint venture in Ohio compared with other auto production jobs even though the work is potentially dangerous and requires significant training… The EV transformation is crucial for the future of the industry and its workers, and the union expects its members not to “get lost in the transition,” Fain said, noting that jobs are needed “that raise people up, not take us back.”
Read more of this story at Slashdot.
Source: Slashdot – Transition to EVs Cited as More Automakers Reduce Workforces