STELLANTIS will offer voluntary buyouts to United States employees as the carmaker looks to cut costs amid slumping profits.
Non-unionised US workers from vice-president level and below in certain functions can opt for the package, which is intended to “assist those interested in pursuing other career options or retirement”, Stellantis said in a message sent on Tuesday (Jul 30) to employees that was seen by Bloomberg. There will be no minimum service requirement to be eligible for the offer, unlike previous programmes, the letter said.
A Stellantis media representative declined to comment on the total number of job cuts targeted.
Automakers including the maker of Jeep SUVs and Ram pickups are under pressure from waning demand from consumers squeezed by rising expenses and huge investments needed to electrify their vehicles. First-half earnings fell sharply at the Amsterdam-based automaker as soft demand fuelled lower vehicle sales in the US and Europe. chief executive officer Carlos Tavares has pledged a further 500 million euros (S$726 million) in savings in the second half compared with the first six months of 2024.
The company has already cut about 400 salaried engineering jobs in the US earlier this year. Stellantis, increasingly criticised by analysts for its lack of innovative new car models, on Tuesday announced it has started shipments of China-made Leapmotor vehicles to European ports.
The Stellantis letter was reported earlier by Automotive News. BLOOMBERG
