Stellantis, the multinational maker of Jeep, Chrysler, Dodge, and Maserati, is laying off roughly 400 U.S. employees as it looks to cut costs to produce its first batch of electric vehicles in the states.
Layoffs will primarily affect the company’s software and engineering/technology departments, Stellantis said in a statement to Quartz.
The reductions will be effective March 31 and add up to about a 2% cutback across the departments, the company said. Affected workers began to receive notifications of the layoffs on Friday morning, the Wall Street Journal reported.
“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 company said.
Workers will receive a compensation package and transition assistance, Stellantis added.
The company said the move will help it better align its resources to remain competitive as it looks to produce its inaugural fleet of EVs.
Meanwhile, the company said Friday that it would be recalling 318,000 vehicles due to side air bag inflator hazards, which can explode with excessive force, the National Highway Traffic Safety Administration (NHTSA), said in a report.
Recalls apply to the 2018-2021 Dodge Charger model and the 2018-2021 Chrysler 300.
Stellantis said no injuries have been reported. Dealers have been told to fix the faulty parts for free.
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