Stellantis to Lay Off 400 Salaried U.S. Employees Amid Unprecedented Uncertainties

Stellantis, the parent company of Chrysler, is initiating a significant layoff affecting approximately 400 salaried employees across various units in the United States, including engineering, technology, and software sectors.

The move is aimed at cost reduction amid what the automaker describes as challenging market conditions.

In a statement released on Friday, Stellantis revealed that the layoffs represent about 2% of the workforce in those specific units, following thorough organizational evaluations. As of the end of the previous year, Stellantis employed 11,800 salaried workers in the U.S. The company has set March 31 as the effective date for these cuts.

Stellantis to Lay Off 400 Salaried U.S. Employees Amid Unprecedented Uncertainties
Layoffs effective March 31, part of CEO Tavares’ strategy to streamline costs since the Fiat Chrysler-PSA merger.

Acknowledging the unprecedented uncertainties and heightened competitive pressures in the automotive industry globally, Stellantis emphasized its commitment to making strategic structural decisions to enhance efficiency and optimize the cost structure.

Although the company declined to provide precise figures on the number of employees affected, sources familiar with the matter confirmed the layoff of around 400 workers, a figure initially reported by The Wall Street Journal.

According to an internal communication verified by unauthorized sources, The layoffs coincided with a “mandatory remote work day” for U.S. salaried, nonunion employees within Stellantis’ engineering and technology division.

Stellantis to Lay Off 400 Salaried U.S. Employees Amid Unprecedented Uncertainties
Stellantis aligns resources, preserves critical skills, and focuses on the EV product offensive and Dare Forward 2030 strategic plan.

This move follows Stellantis CEO Carlos Tavares’ ongoing efforts to streamline costs through measures such as layoffs, voluntary buyouts, and other methods since the merger of Fiat Chrysler and French automaker PSA Groupe in 2021.

These actions are in line with Stellantis’ strategic plan, “Dare Forward 2030,” which aims to enhance profitability, double the company’s revenue to 300 billion euros (approximately $335 billion), and achieve other outlined objectives.

“While recognizing the challenging nature of this news, these measures are essential to align resources effectively, preserving critical skills required to maintain our competitive edge as we focus on executing our EV product offensive and the Dare Forward 2030 strategic plan,” the company stated.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
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