Stellantis Offers US Employees Buyouts in New Round of Cuts
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Stellantis NV will offer voluntary buyouts to U.S. employees as the carmaker looks to cut costs amid slumping profits.
Nonunionized U.S. workers from vice president level and below in certain functions can opt for the package, which is intended to “assist those interested in pursuing other career options or retirement,” Stellantis said in a message sent July 30 to employees that was seen by Bloomberg. There will be no minimum service requirement to be eligible for the offer, unlike previous programs, the letter said.
A Stellantis media representative declined to comment on the total number of job cuts targeted.
RELATED: Stellantis Profit Plunges 48% in First Half of Year
Automakers, including the maker of Jeep SUVs and Ram pickups, are under pressure from waning demand from consumers squeezed by rising expenses and huge investments needed to electrify their vehicles. First-half earnings fell sharply at the Amsterdam-based automaker as soft demand fueled lower vehicle sales in the U.S. and Europe. CEO Carlos Tavares has pledged a further $540 million in savings in the second half compared with the first six months of 2024.
The company has also already cut about 400 salaried engineering jobs in the U.S. earlier this year. Stellantis, increasingly criticized by analysts for its lack of innovative new car models, on July 30 announced it has started shipments of China-made Leapmotor vehicles to European ports.
The Stellantis letter was reported earlier by Automotive News.
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