A Stellantis sign is seen outside FCA’s headquarters and technology center in Auburn Hills, Michigan, January 19, 2021.
Jeff Kowalski | Af | Getty Images
DETROIT – Stellar is laying off about 400 full-time U.S. workers in its engineering, technology and software divisions to chop costs within the face of what it calls difficult market conditions for the automaker.
On Friday, Stellantis said the layoffs would affect about 2% of employees at these units “after rigorous organizational reviews.” At the tip of last yr, Stellantis employed 11,800 employees within the US.
The cuts are effective from March 31.
“As the automotive industry continues to face unprecedented uncertainty and increased competitive pressures globally, Stellantis continues to make appropriate structural decisions across the enterprise to improve performance and optimize cost structures,” the corporate said in an emailed statement.
A spokeswoman for the automaker declined to say exactly what number of workers were being laid off. A source accustomed to the stock confirmed the number was around 400 workers, first reported Friday Wall Street Journal.
The layoffs took place during a “mandatory remote work day” for U.S.-based, non-unionized employees of the Stellantis engineering and technology organization, based on an internal statement confirmed by two sources who weren’t authorized to comment on the actions.
The motion is the newest by Stellantis CEO Carlos Tavares to chop costs through layoffs, buyouts and other methods because the company was formed through the merger of Fiat Chrysler and French automaker PSA Groupe in 2021.
The cuts are a part of Stellantis’ “Dare Forward 2030” strategic plan, which goals, amongst other things, to extend profits and double the carmaker’s revenues by then, to 300 billion euros, or $335 billion.
“While we understand this is difficult news, these actions will better align resources while preserving the critical skills needed to protect our competitive advantage as we continue to focus on implementing our electric product offensive and our Dare Forward 2030 strategic plan,” the corporate said .
