Stellantis plans to lay off about 400 U.S. workers as it shifts its focus to electric vehicle (EV) production, according to multiple media reports. 

The layoffs will be effective March 31 and represent 2% of the company’s jobs worldwide, Reuters says. It says the company offered buyouts to U.S. workers twice last year, giving 6,400 employees a financial incentive to leave the company in November. 

Reuters reported Stellantis saying, “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 mainly impact the engineering, technology and software departments at Chrysler’s Auburn Hills, Michigan headquarters, according to the Washington Post. 

The Washington Post article says CEO Carlos Taveres has claimed the company would have to become more efficient to make the cost of EVs more affordable for the middle class. 

Stellantis, which formed in the 2021 merger of PSA Peugeot and Fiat Chrysler, plans to launch 18 new electric vehicles this year, the article says. It says this would increase its global EV offerings by 60%. 

While Stellantis doubles down on its EVs, Apple announced earlier this month it was terminating EV efforts and shifting more focus to AI. Bloomberg reported that the shift would cause some layoffs for the company. 

Earlier this week Fisker, which only produces EVs, announced it will pause production as it faces bankruptcy and delisting of its Class A stock, according to a company press release and Securities and Exchange Commission filings. 

Ford and General Motors also have made cuts in recent years as the companies transition to manufacturing EVs, according to the Washington Post. 

Ford laid off 4,000 full-time and contract workers in 2022 and about 5,000 salaried workers took retirement and buyout offers at GM last spring.

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