Carlos Tavares, CEO of automotive giant Stellantis, speaks to reporters at a joint media event between Stellantis and Zero Sports Cars in Hangzhou, Zhejiang Province, eastern China, on May 14, 2024.
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Detroit – Automobile Manufacturer Strantis The company plans to reduce its U.S. headcount again through a broad range of voluntary acquisitions to lower costs and boost profits.
The company said in an email to employees Tuesday morning that it would offer a voluntary severance package to non-union U.S. employees “in certain functions at the vice president level and below.”
The company, which reported disappointing first-half results last week, said it could face involuntary layoffs if not enough employees participate in a buyout program. Eligible employees will receive an email in mid-August with instructions on how to obtain the personalized offer, the release said.
Stellantis confirms acquisition plan, first announced by automotive news, early Tuesday afternoon.
“As Stellantis continues to combat inflationary pressures and, more importantly, provide consumers with affordable, high-quality vehicles, we remain committed to taking the necessary actions to reduce costs and protect the company’s long-term future,” the company said in a statement. sustainable development.
Stellantis Chief Executive Carlos Tavares has been on a mission to cut costs since Fiat Chrysler merged with France’s PSA Group in January 2021 to form the company. Part of the plan is to increase profits and double revenue to 300 billion euros by 2030.
Cost-saving measures include reshaping the company’s supply chain and operations as well as previous job cuts.
“We are committed to executing on our ‘Dare Forward 2030’ strategy and we must continue to adapt by streamlining our operations and finding efficiencies to enhance our competitiveness to ensure our future sustainability,” the company said in an email on Tuesday. and growth.
Several Stellantis senior executives have previously told CNBC that the early layoffs were difficult but effective. Others, who spoke on condition of anonymity because of the potential impact, described the activities as exhausting and even excessive.
Tavares last week pushed back against suggestions that the company’s massive cost-cutting efforts are causing problems for the automaker.
“When you don’t deliver for whatever reason … you might want to find a scapegoat. It’s easy to cut the budget. It’s wrong,” Tavares said.
According to public documents, Stellantis has laid off 15.5% of its workforce, or about 47,500 employees, from December 2019 to the end of 2023. Additional layoffs in the U.S. and Italy this year involving thousands of factory workers have sparked outrage from unions in both countries.
Stellantis last implemented a voluntary buyout program in November, offering the deals to about half of its U.S. white-collar workers.
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