Stellantis has plans to reduce its US salaried workforce through a broad voluntary buyout program to cut costs and increase profitability.
In an email to employees, the company said it would offer the program to nonunion US employees at the vice president level and below across specific functions.
This move comes after Stellantis reported disappointing financial results for the first half of the year.
The automaker warned involuntary layoffs may follow if the buyout program does not attract sufficient participation.
Eligible employees will receive personalized offers via email in mid-August, outlining the details of the separation program.
The buyout program, first reported by Automotive News and confirmed by Stellantis, is part of a broader cost-cutting initiative led by CEO Carlos Tavares.
“As 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”
Under his “Dare Forward 2030” plan, Stellantis aims to double its revenue to €300 billion ($325 billion) by 2030 while also boosting profitability.
The plan involves extensive restructuring, including changes to the company’s supply chain and operations and reductions in workforce.
Stellantis said: “As 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.”
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Since its formation in January 2021 through the merger of Fiat Chrysler and PSA Groupe, Stellantis has implemented several rounds of workforce reductions.
According to public filings, the company has reduced its global headcount by roughly 15.5 percent, or around 47,500 employees, from December 2019 to the end of 2023.
This includes recent job cuts affecting thousands of plant workers in the US and Italy, which have sparked criticism from unions in both countries.
Stellantis is not alone in its cost-cutting efforts.
Other automakers, such as GM and Ford, have also reduced their workforce to reallocate resources toward developing new technologies, including electric vehicles.
