Automaker Stellantis announced plans to reduce its U.S. workforce through a voluntary buyout program targeting non-union employees at the vice president level and below in specific functions. This initiative, disclosed in an email to employees, is part of the company’s strategy to cut costs and boost profitability following disappointing first-half financial results. The company warned that if insufficient employees accept the buyout offers, involuntary layoffs might be necessary. Eligible employees will receive details of their offers in mid-August.
The move aligns with Stellantis’ ongoing cost-saving measures, which include streamlining supply chains and operations. Since December 2019, Stellantis has reduced its workforce by approximately 15.5%, or 47,500 employees, through various cuts, including recent layoffs affecting thousands of plant workers in the U.S. and Italy. These actions have drawn criticism from unions but are seen by Stellantis as crucial for maintaining competitiveness and achieving long-term growth.
Stellantis CEO Carlos Tavares has emphasized the need for aggressive cost-cutting to support the company’s “Dare Forward 2030” strategy, which aims to double revenue to 300 billion euros by 2030. Despite criticisms of the cost-cutting approach, Tavares defended the measures, rejecting claims that budget cuts have harmed the company’s operations.
