Over 1,500 Employees Take Early Exit From Stellantis In Italy

Stellantis has announced that it has reached a voluntary agreement with Italian labor unions to cut at least 1,520 jobs in Italy.

The news comes just days after the automaker announced laying off 400 U.S. employees from its engineering, software, and technology divisions. Stellantis claims the moves are due to the automaker grappling with challenges posed by the shift towards electrification and changing consumer demands.

The announcements have been met with criticism as the automaker has made record profits in the past two years and is now facing pushback in sales in North America due to overpriced products and electric vehicles (EVs).

The bulk of the Italian job cuts, totaling around 1,520 positions, are concentrated in the Turin area, a region with historical significance in Italy’s automotive sector. Among those affected are 300 workers from the Mirafiori Assembly Plant and 733 office staff. Stellantis has offered these employees voluntary exit packages, including financial incentives, as part of the agreement reached with trade unions.

The reduction in the workforce is not limited to Turin alone. Additional voluntary lay-off deals have been struck for up to 850 employees at the Cassino Assembly Plant and up to 100 workers at the engine-making facility in Pratola Serra, though the agreement for Cassino is still pending confirmation by Stellantis.

These job cuts represent a significant portion of Stellantis’ workforce in Italy, where the company employs approximately 43,000 people. The decision underscores the challenges faced by traditional automakers as they navigate the transition towards electric vehicles and adapt to changing market dynamics.

Stellantis has emphasized that these agreements are strictly voluntary and primarily targeted at employees nearing retirement age or those seeking new career opportunities. Nevertheless, the impact on the supply chain and the broader automotive ecosystem is expected to be significant, according to some trade union representatives who did not sign the agreement.

The reduction in output at facilities like the Mirafiori plant, where production has been scaled back due to weak demand for EVs like the Fiat 500e, further underscores the need for strategic adjustments within the company.

Despite the job cuts in Italy and the U.S., Stellantis reaffirms the importance of both regions in its global operations. The company is engaged in discussions with the Italian government to boost annual vehicle output in the country, highlighting the ongoing collaboration between the automotive industry and public institutions.

As Stellantis CEO Carlos Tavares has indicated, Turin remains a vital hub for the company’s operations. However, challenges persist, and stakeholders are urged to accelerate efforts to revitalize facilities like Mirafiori and develop comprehensive strategies, such as the recent talk about cheaper Chinese-sourced EVs there.