(WWJ) - Stellantis announced Friday that they are cutting 400 technology and engineering jobs.
Stellantis released a statement on March 22 saying about 2% of the company’s engineering, technology and software workforce is being cut. The decision will take effect on March 31.
The affected employees will receive a “comprehensive separation package and transition assistance,” according to the statement.
The rising costs in labor and technology development is hitting all the auto companies, Wayne State University Business Professor Marick Masters said.
“Across the board you’re going to see those kinds of changes take place with increasing frequency because the market is very turbulent,” Masters said. “With the recent new emission guidelines, companies are going to have to forecast how they’re going to meet those guidelines going ahead.”
The Biden Administration announced new standards in vehicle emissions that are expected to raise the sales of hybrid and electric vehicles, according to an article from the Associated Press. The EPA said the country could meet the new emission standards if the majority of vehicles being sold are electric, plug-in hybrids or gas-powered vehicles that are more efficient and get more miles per gallon.
The company said the job cuts are needed as they focus on their electric vehicle development.
“While we understand this is difficult news, these actions will better align resources while preserving the critical skills needed to protect our competitive advantage as we remain laser focused on implementing our EV product offensive and our Dare Forward 2030 strategic plan.”
Masters said he anticipates companies making more cuts to free up “as many resources as possible.”
WWJ’s Jeff Gilbert said the company has also recently decreased the number of contract and temporary workers. Stellantis has also reduced its presence at auto shows.