Stellantis Lays Off 2% Of Its Workforce In The United States

400 White-Collar Employees From Engineering, Technology, and Software Divisions Are Being Let Go...

Robert S. Miller March 22, 2024

Chrysler World Headquarters and Technology Center. (Stellantis).

In a move aimed at navigating the shifting terrain of the automotive industry, Stellantis North America has announced significant staffing cuts within its engineering, technology, and software divisions. The company, known for iconic brands such as Chrysler, Dodge, Jeep®, and Ram, revealed that approximately 400 white-collar employees, comprising about 2% of its workforce in the United States, will be affected by the layoffs.

Stellantis spokesperson Jodi Tinson underscored the rationale behind the decision, stating, “As the auto industry continues to face unprecedented uncertainties and heightened competitive pressures around the world, Stellantis continues to make the appropriate structural decisions across the enterprise to improve efficiency and optimize our cost structure.” This move aligns with the company’s broader strategy to adapt to evolving market dynamics.

Emphasizing the company’s commitment to its employees, Tinson assured that those impacted by the layoffs would receive a “comprehensive separation package and transition assistance.” Stellantis aims to facilitate a smooth transition for affected individuals as it reshapes its workforce.

Ram Rampage Rebel Compact Pickup Prototype.

The automotive giant clarified that these layoffs are part of a strategic initiative aimed at safeguarding its competitive edge amid the ongoing transition towards electric vehicles (EVs). Stellantis is poised to launch its first EVs in the United States this spring, marking a significant milestone in its journey towards electrification.

Furthermore, the company’s decision to streamline operations comes in the context of ambitious sustainability goals. Stellantis has set targets to reduce its carbon footprint by half by 2030 and achieve full carbon neutrality by 2038. These objectives necessitate a strategic realignment of resources to prioritize investments in sustainable technologies and practices.

Jeep® Gladiator High Altitude Prototype.

Stellantis emphasized that the layoffs are not merely a cost-cutting measure but rather a strategic imperative aimed at positioning the company for long-term success in a rapidly evolving automotive landscape. By optimizing its cost structure and enhancing operational efficiency, Stellantis aims to maintain its leadership position in an increasingly competitive marketplace.

The layoffs are scheduled to take effect on March 31.

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T/A392 Mar 22, 2024 #1

More frightening self destructive behavior. How much US talent is being forever lost, talent that will move to the competitors. PSA Group is hellbent on the destruction of Chrysler.

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redriderbob Mar 22, 2024 #2

I can't say you are wrong... it's about Tavares being a penny pincher. Got make that record profit every year.

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S Saltyferret Mar 23, 2024 #3

Actually, it's relocation of assets and control. Design is being sourced over seas. The closing of Auburn Hills is imminent. Plants in the US are retooled with garage sale materials or mothballed. Timing for product development and launch are ridiculously restricted. Underfunded, simultaneous tool and product development, and the elimination of management when they fail. The very dedicated and intelligent engineers I work with have had enough. Those that have the foresight/ability are leaving for other manufacturers or the business all together. All this, while the plants in France get all the resources, manpower, and time needed. Look up the videos of the Stellantis plants in France and you can easily see how much more is spent there. The N.A. senior management can not/will not stand up to their "partners" across the pond. The only thing that will slow this bleed off is for Americans to stop buying Stellantis products from overseas. Fiat, Alfa, ect. While those of you not directly in the industry may not see the "big deal", this is another nail in America's self sufficiency and destruction of the middle class. Wake up.

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