DETROIT – Stellantis, the global automaker, is launching a large-scale voluntary buyout program for its U.S. workforce as part of its ongoing efforts to reduce costs and increase profitability.
In an email to employees Tuesday morning, the company revealed plans to offer a voluntary severance package to non-union U.S. employees at the vice president level and below in specific departments.
Stellantis, which recently announced disappointing first-half financial results, has indicated that involuntary layoffs may be necessary if the buyout program fails to reach sufficient participation. Eligible employees will receive detailed emails in mid-August with instructions on how to access their personalized offers.
The company confirmed the acquisition move, which was first reported by Automotive News on Tuesday morning.
“As Stellantis continues to overcome inflationary pressures and strives to offer consumers high-quality, affordable vehicles, we are committed to taking essential steps to reduce our costs and ensure the long-term sustainability of our business,” the company said in an email.
Since its formation through the merger of Fiat Chrysler and PSA Groupe in January 2021, CEO Carlos Tavares has led Stellantis on a mission to simplify operations and reduce costs as part of the “Dare Forward 2030” plan. This strategy aims to double revenues to 300 billion euros by 2030.
Cost-cutting measures include reorganizing the supply chain and business operations, as well as previous workforce reductions.
“As we execute on our Dare Forward 2030 strategy, we must continue to simplify operations and find efficiencies that improve our competitiveness and ensure future sustainability and growth,” Stellantis said in the email, which CNBC reviewed and verified.
Some Stellantis executives described previous cost-cutting measures as difficult but effective. Others, speaking anonymously because of the potential fallout, described them as overly stringent.
Last week, Tavares pushed back against claims that the company’s massive cost-cutting efforts were causing problems for the automaker.
“When the results are insufficient… someone might look for a scapegoat. Blaming budget cuts is an easy way out. It's wrong,” Tavares said.
Between December 2019 and the end of 2023, Stellantis reduced its workforce by 15.5%, or about 47,500 employees, according to public filings. Further job cuts this year, affecting thousands of workers in the United States and Italy, have sparked labor protests in both countries.
Stellantis last offered a voluntary buyout program in November, which about half of its U.S. employees were eligible to participate in.
