In an effort to save expenses, Stellantis is terminating roughly 400 salaried staff members in its engineering, technology, and software divisions in the United States as the automaker faces challenging market conditions.
On March 22, Stellantis announced layoffs following a rigorous organizational review. The layoff is expected to affect approximately 2% of workers in their units. As of the end of the previous year, Stellantis employed 11,800 salaried workers in the United States.
Layoffs will take effect on March 31, 2024.
The engineering and technology division of Stellantis laid off salaried, nonunion workers in the United States on a “mandatory remote work day.”
After Fiat Chrysler and French automaker PSA Groupe merged to form Stellantis in 2021, Carlos Tavares, the firm’s CEO, has recently taken steps to reduce expenses through buyouts, layoffs, and other means.
The reductions are a component of an effort to meet the objectives of Stellantis’ “Dare Forward 2030” strategy plan, which includes raising profitability and tripling the automaker’s revenue to 300 billion euros, or $335 billion, by that time.
The automaker is enhancing efficiency and optimizing its cost structure to withstand unprecedented uncertainties and competitive pressures in the global auto industry. In an emailed statement, the company acknowledged the difficulty of this news but emphasized that these actions aim to align resources and preserve critical skills. This strategic move supports their focus on implementing an EV product offensive and executing the Dare Forward 2030 strategic plan, ensuring a competitive advantage in the evolving market landscape.
