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Stellantis To Cut Around 400 U.S Jobs

By Nithya Bose in Business News, posted March 25, 2024

Chrysler parent Stellantis is laying off about 400 salaried employees across the US in its engineering, technology, and software departments.

This decision, aimed at reducing costs amid challenging market conditions, will impact roughly two percent of its workforce in these units.

The layoffs, part of the company's efforts to navigate through "unprecedented uncertainties" and competitive pressures in the auto industry, are set to take effect on Sunday, March 31.

The company, which had 11,800 US salaried employees at the end of last year, said the layoffs follow "rigorous organizational reviews" to enhance efficiency and optimize cost structures.

Stellantis did not disclose the specific number of affected employees.

Sources confirmed the figure to be around 400, a detail The Wall Street Journal initially reported.

The company announced the move during a "mandatory remote work day" for US salaried, nonunion employees within Stellantis' engineering and technology organization.

This action aligns with CEO Carlos Tavares' ongoing efforts to reduce expenses through various measures.

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It includes layoffs and buyouts since Stellantis formed from Fiat Chrysler's and PSA Groupe's merger in 2021.

These cuts are integral to Stellantis' ambitious "Dare Forward 2030" strategic plan.

It aims to boost profits and double the company's revenue to €300 billion (about $335 billion) by 2030, among other goals.

The automaker said: “While we understand this is difficult news, these actions will better align resources while preserving the critical skills needed to protect our competitive advantage as we remain laser focused on implementing our EV product offensive and our Dare Forward 2030 strategic plan.”

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