Automaker Stellantis is once again planning to reduce its U.S. employee headcount through a voluntary buyout program. The company announced that it will offer the program to nonunion U.S. employees at the vice president level "and below in certain functions." If not enough employees participate in the buyout, involuntary terminations may follow. Eligible employees will receive individualized offers in mid-August.
Stellantis CEO Carlos Tavares has been on a cost-cutting mission since the company was formed through a merger between Fiat Chrysler and France's PSA Groupe in January 2021. The cost-saving measures are part of his "Dare Forward 2030" plan to increase profits and double revenue to 300 billion euros ($325 billion) by 2030.
The company has reduced headcount by 15.5%, or roughly 47,500 employees, between December 2019 and the end of 2023. Additional job cuts this year involving thousands of plant workers in the U.S. and Italy have drawn the ire of unions in both countries.
Automakers have been attempting to lower costs and boost profits and cash reserves to pay for new technologies such as all-electric vehicles. For example, GM last year offered voluntary buyouts to a "majority" of its U.S. white-collar employees, while Ford Motor last year conducted involuntary layoffs, primarily affecting engineering jobs in the U.S. and Canada.
Hoe much better off would they be if they NEVER had to invest so much into loser EVs?