Automobile manufacturer Stellantis intends to conduct a widespread voluntary buyout in an effort to save expenses and increase earnings, so reducing its workforce in the United States once more.
The corporation announced in an email to staff members on Tuesday morning that nonunion U.S. employees at the vice president level “and below in certain functions” would be eligible for a voluntary separation program.
The company warned that involuntary terminations may occur if not enough workers take part in the buyout, following its weak first-half results last week. According to the letter, qualified workers will receive an email in the middle of August with details on how to view their customized offers.
Early on Tuesday afternoon, Stellantis acknowledged the buyout scheme, which Automotive News had already reported.
“As Stellantis continues to address inflationary pressures and, importantly, provide consumers with affordable vehicles at the highest quality, we remain focused on taking the necessary actions to reduce our costs to protect the long term sustainability of the company,” the company stated.
Since Fiat Chrysler and France’s PSA Groupe merged to establish Stellantis in January 2021, Carlos Tavares, the CEO of the firm, has been on a drive to reduce costs. His “Dare Forward 2030” plan calls for doubling revenue and profit to reach 300 billion euros ($325 billion) by 2030.
Along with prior workforce cutbacks, the company’s operations and supply chain have been reshaped as part of the cost-saving efforts.
“With our commitment to executing our Dare Forward 2030 strategy, we must continue to adapt by streamlining operations and finding efficiencies that will enhance our competitiveness to ensure our future sustainability and growth,” the company stated.
Last week, Tavares refuted the assertion that issues had arisen as a result of the company’s aggressive cost-cutting measures.
“When you don’t deliver for any reason … you may want to use a scapegoat. The budget cut is an easy one. It’s wrong,” Tavares stated.
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According to public documents, Stellantis lowered its headcount by 15.5%, or about 47,500 people, between December 2019 and the end of 2023. The ire of unions in both Italy and the United States has been aroused by additional job losses made this year that affect thousands of plant workers in both countries.
About half of the automaker’s white-collar employees in the United States were offered offers during its most recent voluntary buyout program, which ended in November.
In order to finance the purchase of innovative technologies like all-electric cars, automakers have been working to reduce expenses while increasing earnings and cash reserves.
