Auto giant Stellantis CEO Carlos Tavares speaks to journalists during a joint media event between Stellantis and Leapmotor in Hangzhou, eastern China’s Zhejiang province, May 14, 2024.
– | AFP | Getty Images
DETROIT – Automobile Manufacturer Stellantis plans to again cut its U.S. headcount through a broad voluntary buyback, as the company tries to cut costs and boost profits.
In an email to employees Tuesday morning, the company said it would offer a voluntary severance program to non-union US employees at the vice president level “and below in certain functions.”
The company reported disappointing first half result last week, said involuntary terminations could occur if not enough employees participate in the buyout program. Eligible employees will be emailed in mid-August with instructions on how to access their individual offers, the notice said.
Stellantis has confirmed its acquisition program, first of all Car news, early Tuesday afternoon
“While Stellantis continues to address inflationary pressures and importantly deliver affordable vehicles of the highest quality to consumers, we remain focused on taking the necessary actions to reduce costs to protect the long-term sustainability of the company,” the company said in an emailed statement.
Stellantis CEO Carlos Tavares has in a cost-cutting mission since the company was created through a merger between Fiat Chrysler and France’s PSA Groupe in January 2021. It is part of his “Dare Forward 2030” plan to increase profits and double revenue to 300 billion euros by 2030.
Cost-saving measures include reshaping the company’s supply chain and operations as well as earlier staff cuts.
“As we commit to our Dare Forward 2030 strategy, we must continue to adapt by streamlining our operations and finding effective solutions that enhance our competitiveness to ensure sustainability and future growth,” the company said in an email sent Tuesday, which was viewed and verified by CNBC.
Some former Stellantis executives described the earlier cuts to CNBC as tough but effective. Others, speaking on condition of anonymity because of potential repercussions, described them as harsh to the point of being excessive.
Last week, Tavares dismissed claims that the company’s massive cost-cutting efforts had caused problems for the automaker.
“When you don’t meet your goals for whatever reason … you might want to find a scapegoat. It’s easy to cut the budget. That’s wrong,” Tavares said.
Stellantis has cut 15.5% of its payroll, or about 47,500 employees, from December 2019 through the end of 2023, according to public filings. Additional job cuts this year involving thousands of factory workers in the United States and Italy have angered unions in both countries.
Stellantis last conducted a voluntary buyout program in November, offering deals to nearly half of its U.S. white-collar employees.
