Stellantis Announces U.S. Voluntary Separation Program
Involuntary Actions May Follow If Objectives Aren't Met Voluntarily...
Stellantis has announced that it will offer its salaried U.S. workforce a voluntary separation program, signaling continued efforts to streamline operations and reduce costs. The move comes after a disappointing first-half 2024 financial report released last week.
According to an internal company e-mail obtained by MoparInsiders.com, the program is available to employees from the Vice President level on down, with no minimum service requirement.
“We wanted to give you some advance notice so you can thoughtfully consider whether this opportunity might be of interest to you,” the e-mail stated. “As always, we would prefer to meet our strategic headcount objectives through natural attrition and voluntary programs. Transparently, it is important to note that subsequent involuntary actions may be necessary if we do not meet our objectives through voluntary means.”
Stellantis employs approximately 11,000 salaried workers in the U.S., but it remains unclear how many employees will be eligible for this offer or the specific target for the headcount reduction. Eligible employees will receive an email in mid-August with instructions on accessing their offers. The program includes severance based on service years as of Sept. 30, 2024, a lump sum for health care costs, three months of outplacement services, and 401(k) vesting for those with less than three years of service.
This initiative follows previous efforts by Stellantis to reduce its workforce. In November, the company offered separation packages to 6,400 U.S. salaried employees in response to challenging market conditions. Stellantis has also implemented layoffs and buyouts for salaried and hourly workers over recent months.
Stellantis emphasized in its communication that the preference is to meet its headcount objectives through natural attrition and voluntary programs. However, the company acknowledged that involuntary actions might be necessary if these objectives are not met voluntarily.
The voluntary separation program aligns with Stellantis’ Dare Forward 2030 strategy, which focuses on streamlining operations and finding efficiencies to enhance competitiveness and ensure long-term sustainability and growth.
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