Chrysler parent Stellantis is offering buyouts to roughly half of its U.S. white-collar employees to reduce headcount and cut costs for the automaker’s North American operations.
Stellantis, the multinational automotive company, announced on Monday that it will be offering voluntary separation packages to 6,400 of its 12,700 nonbargaining unit employees in the United States who have five or more years of employment. This move is part of the company’s ongoing efforts to cut costs, a trend seen across the U.S. auto industry, as companies grapple with economic uncertainties and significant investments in emerging technologies like electric vehicles. Similar cost-cutting measures have been undertaken by General Motors and Ford Motor over the past year.
In an emailed statement, Stellantis highlighted the challenging market conditions faced by the U.S. automotive industry and stated that the voluntary separation packages aim to protect the company’s operations amid the industry’s transition to electric vehicles. The package is designed to assist non-represented employees who wish to separate or retire from the company, offering favorable benefits to support their transition to other interests. buyouts to roughly half
The company did not provide details on the number of employees or the total costs it aims to cut through this initiative. A Stellantis spokeswoman also declined to comment on the possibility of involuntary layoffs if the desired number of employees do not accept the buyout offers. Mark Stewart, Stellantis North American Chief Operating Officer, informed employees of the program, with a deadline for accepting buyout offers set for December 8.
This marks the second round of salaried buyouts by Stellantis in 2023. In April, the company extended voluntary buyouts to around 33,500 U.S. employees, including 31,000 hourly employees with at least one year of employment and 2,500 salaried, nonunion employees with 15 or more years of service.