Stellantis, an automotive company, is offering voluntary buyouts to nearly half of its US white-collar employees in an effort to streamline operations and cut costs amidst economic uncertainties and substantial investments in electric vehicles. The offer covers 6,400 out of 12,700 non-bargaining unit US staff with five or more years of tenure, marking the company’s latest move to align with cost-cutting trends in the US auto industry. This initiative follows similar workforce reduction actions by other major automakers in the past year, highlighting the challenges faced by the US automotive industry.
This latest round of buyout offers comes after a previous round in April, where Stellantis extended voluntary buyouts to approximately 33,500 US employees, including both hourly and salaried staff. The announcement also comes following a tentative agreement with the United Auto Workers (UAW) union, which includes voluntary buyouts and a voluntary incentive plan for retirement. While the salaried buyouts are separate from anticipated increases in US labor costs resulting from the UAW deal, they signify Stellantis’ efforts to navigate challenges in the automotive industry and prepare for the transition to electric vehicles. Mark Stewart, Stellantis North American COO, has communicated the buyout program to employees, allowing them until December 8 to consider and accept the offers.
In addition to these initiatives, the company refrained from disclosing the targeted reduction in workforce or the associated total costs. It also declined to comment on the possibility of involuntary layoffs if the buyouts don’t garner sufficient interest, leaving the outcome of the buyout program uncertain for many employees affected.