DETROIT \u2014 Automaker\u00a0Stellantis\u00a0plans to once again reduce its U.S. employee headcount through a broad voluntary buyout, as the company attempts to reduce costs and boost profits.<\/p>\n
In an email to employees Tuesday morning, the company said it would offer a voluntary separation program to non-union U.S. employees at the vice president level \u201cand below in certain functions.\u201d<\/p>\n
The company, which reported\u00a0disappointing first-half results\u00a0last week, said if not enough employees participate in the buyout program, involuntary terminations could follow. The message said eligible employees will be sent an email in mid-August with instructions on how to access their individualized offers.<\/p>\n
Stellantis confirmed the buyout program, which was first by\u00a0Automotive News,\u00a0early Tuesday afternoon.<\/p>\n
\u201cAs Stellantis continues to address inflationary pressures and, importantly, provide consumers with affordable vehicles at the highest quality, we remain focused on taking the necessary actions to reduce our costs to protect the long term sustainability of the company,\u201d the company said in an emailed statement.<\/p>\n
Stellantis CEO Carlos Tavares has been\u00a0on a cost-cutting mission\u00a0since the company was formed through a merger between Fiat Chrysler and France\u2019s PSA Groupe in January 2021. It\u2019s part of his \u201cDare Forward 2030\u201d plan to increase profits and double revenue to 300 billion euros by 2030.<\/p>\n
The cost-saving measures have included reshaping the company\u2019s supply chain and operations as well as earlier headcount reductions.<\/p>\n
\u201cWith our commitment to executing our Dare Forward 2030 strategy, we must continue to adapt by streamlining operations and finding efficiencies that will enhance our competitiveness to ensure our future sustainability and growth,\u201d the company said in the email Tuesday, which was viewed and verified by CNBC.<\/p>\n
Several Stellantis executives previously described the earlier cuts to CNBC as difficult but effective. Others, who spoke on the condition of anonymity due to potential repercussions, described them as grueling to the point of excessiveness.<\/p>\n
Tavares last week pushed back on the claim that the company\u2019s massive cost-cutting efforts had created problems at the automaker.<\/p>\n
\u201cWhen you don\u2019t deliver for any reason \u2026 you may want to use a scapegoat. The budget cut is an easy one. It\u2019s wrong,\u201d Tavares said.<\/p>\n
Stellantis has reduced headcount by 15.5%, or roughly 47,500 employees, between December 2019 and the end of 2023, according to public filings. Additional job cuts this year involving thousands of plant workers the U.S. and Italy have drawn the ire of unions in both countries.<\/p>\n
Stellantis last conducted a voluntary buyout program in November, offering the deals to roughly half of its U.S. white-collar employees.<\/p>\n<\/p>\n
DETROIT \u2014 Automaker\u00a0Stellantis\u00a0plans to once again reduce its U.S. employee headcount through a broad voluntary buyout, as the company attempts to reduce costs and boost profits. In an email to employees Tuesday morning, the company said it would offer a voluntary separation program to non-union U.S. employees at the vice president level \u201cand below in […]<\/p>\n","protected":false},"author":0,"featured_media":7073,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-7072","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/7072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=7072"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/7072\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/7073"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=7072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=7072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=7072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}