Effective March 31st, Stellantis will lay off 400 white-collar workers in the United States. The automaker is reducing its workforce by 2%, impacting its engineering, software, and technology divisions. Despite strong results in 2023, the company cited several reasons for the decision in a statement.
Stellantis lays off 400 white-collar workers in the US
“The automotive industry continues to face uncertainties and increasing competitive pressures worldwide. Stellantis continues to take appropriate structural actions across the company to improve efficiency and cost structure,” the company said in a statement released on Friday. Many affected employees learned of the layoffs upon the release of the statement, on Friday morning. Employees will receive transition assistance and a “comprehensive separation package.”
The automaker Group, led by Carlos Tavares, told AutoNews that these cuts will ultimately make resources more efficient, preserving critical skills needed to protect the competitive advantage under the Dare Forward 2030 strategic plan.
A source stated that this is just the first in a series of cuts that Stellantis will announce in the coming months, and that they are being structured to allow the company to make the layoffs without having to give 60 days’ notice, “circumventing” the WARN Act, which requires such notice when layoffs exceed 500 units. It is worth noting that last year, Stellantis offered buyouts to 33,500 employees in an attempt to reduce its workforce by 3,500.
All of these moves come despite Stellantis posting record net profits of $20 billion in 2023. This represents an 11% increase in net income despite a 1% decline in US sales.