Stellantis is offering voluntary buyouts to around half of its US white-collar employees.
The automaker is looking to streamline operations and cut costs amid 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.
It marks the company’s latest move to align with cost-cutting trends in the US auto industry.
This announcement follows similar initiatives by General Motors and Ford Motor, which have undergone salaried workforce reductions in the past year.
Stellantis said: “As the U.S. automotive industry continues to face challenging market conditions, Stellantis is taking the necessary structural actions to protect our operations and the Company.
“As we prepare for the transition to electric vehicles, Stellantis announced today that it will offer a voluntary separation package to assist those non-represented employees who would like to separate or retire from the Company to pursue other interests with a favorable package of benefits.”
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.
Mark Stewart, Stellantis North American COO, communicated the buyout program to employees, allowing them until December 8 to consider and accept the offers.
Second round of salaried buyouts this year
This initiative is the second round of salaried buyouts this year, following a previous round in April.
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In April, the company extended voluntary buyouts to approximately 33,500 US employees, including hourly and salaried staff.
The latest buyout offers come on the heels of Stellantis reaching a tentative agreement with the United Auto Workers (UAW) union.
UAW won new labor contracts covering its 43,000 unionized workers.
The union agreement, yet to be ratified, includes voluntary buyouts and a voluntary incentive plan for retirement.
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It offers $50,000 pretax for eligible production and skilled-trade members in 2024 and 2026.
The salaried buyouts, however, are asserted to be separate from the expected increases in US labor costs resulting from the UAW deal.
It includes substantial wage increases, cost-of-living adjustments, increased contributions for retirees, major investments, and other benefits.