More layoffs continue from Stellantis, this time coming via email due to low earnings. After Europe, now it is North America‘s turn; Jeep and Dodge are the brands that are in the crosshairs. The company is thereby aiming to reduce its workforce, but mostly non-unionized workers are affected. While in Italy voluntary exits with incentives are being discussed, in the US there is talk of dry cuts. A strategy that is causing much talk and discussion by casting darkness over the future of the automotive giant.
Stellantis crisis to include job cuts and new strategies
As we know, Stellantis has been at the center of several issues lately, so we can say that it is going through a period of profound renewal, which is characterized by a series of decisions by the company that could cause great concern among the automotive group’s employees and all those who constantly observe the industry.
In recent months, as we previously announced, the company has made public a “Voluntary Separation Program.” An event that specifically targets a part of its staff, especially concentrated in particular in the United States. This initiative, seen by some as an attempt at an opportunity to “build one’s future,” is in fact configured as a proposed layoff with incentives, which would then aim to go to reduce labor costs and downsize the company’s workforce.
The reasons that have been used by Stellantis to justify these decisions are many: a “complex industrial environment,” “operational problems,” and the need to “ensure the long-term sustainability of the company.” These are probably serious issues for the company, which must do everything to try to proceed in the best possible way, but what is causing controversy is the manner in which it is being done.
Layoffs via e-mail: Stellantis under indictment for lack of transparency
Specifically, there has been much discussion about the decision to communicate layoffs via email, without direct discussion with the employees involved. This modality has been described by many as disrespectful and, above all, in strong contrast to the principles of transparency and fairness that should characterize Stellantis’ labor relations. A not so different situation occurred a few months ago with Tesla, when Elon Musk proceeded to carry out many layoffs in very similar ways to those adopted by Stellantis.
So now, from one side, Stellantis employees are facing a future with very little certainty, characterized by a very high level of insecurity and fear of losing their jobs. Conversely, on the other side, the company risks compromising its human capital by losing skills and professionalism of people who are very difficult to replace. Moreover, the decisions made by Stellantis could also have a negative impact on the very image of the group and its relationship with unions and institutions.
In order to best meet these challenges, nowadays companies in the sector are obliged to have to implement transformation processes that are complex and very delicate, requiring a careful and forward-looking approach. Nonetheless, it is also crucial that these processes are carried out with respect for workers’ rights and with careful and appropriate communication, involving all stakeholders.