Parent Jeep Will Lay Off 3,500 Workers in the US, Promises Severance of IDR 741 Million

Jakarta, Armfalcon.com —

Parent Jeep and Chrysler, Stellantiswill terminate employmentlayoffs) to its 3,500 employees in the United States (US).

The news of the layoffs leaked from the United Auto Workers (UAW) union letter dated Monday (24/4), which was then uploaded on their Facebook page the day after. The letter said the layoffs were targeting part-time workers who were paid hourly.

“The automaker is seeking ways to reduce its hourly workforce by offering an incentive package that includes US$50,000 in severance pay or around Rp.741 million (assuming an exchange rate of Rp.14,836 per US dollar) for workers hired before 2007,” the UAW letter said. ReutersWednesday (26/4).

Stellantis spokesperson Jodi Tinson declined to comment on the layoff news. However, a source who knows about the layoffs said the amount of severance pay was lower than what was written in the letter.

At the end of last February, Stellantis indefinitely stopped operations at its assembly plant in Illinois, USA, citing the increasing cost of producing electric vehicles. The action affects the approximately 1,350 workers who build the Jeep Cherokee SUV.

The closure of the factory in Illinois adds to the list of weakening company performance. Last October, Stellantis said its joint venture with Guangzhou Automobile Group Co (GAC) to manufacture Jeep vehicles in China would go bankrupt in October 2022.

The company said that sales of the Jeep Cherokee SUV and Compass crossover in the Bamboo Curtain country have fallen over the past four years, causing losses to shareholders.

[Gambas:Video CNN]

(skt/pta)