The Stellantis sign is seen in front of the FCA Headquarters and Technology Center in Auburn Hills, Michigan on January 19, 2021.
Jeff Kowalsky | Afp | Getty Images
DETROIT – Stellar is laying off about 400 U.S. employees in its engineering, technology and software divisions to cut costs as the automaker faces what it says are challenging market conditions.
Stellantis said Friday that the layoffs would affect about 2% of employees in those units “after rigorous organizational reviews.” Stellantis had 11,800 employees in the U.S. at the end of last year.
The cuts come into effect on March 31st.
“As the global automotive industry continues to face unprecedented uncertainty and increased competitive pressures, Stellantis continues to make the appropriate structural decisions across the company to improve efficiency and optimize our cost structure,” the company said in an emailed statement.
A spokeswoman for the automaker declined to reveal the exact number of employees laid off. A source familiar with the actions confirmed that about 400 workers were involved, a figure first reported by the Wall Street Journal on Friday.
According to an internal announcement confirmed by two sources not authorized to speak about the actions, the layoffs occurred during a “mandatory remote work day” for U.S.-based, non-union employees in Stellantis’ engineering and technology organization .
The promotion is the latest by Stellantis CEO Carlos Tavares to cut costs through layoffs, buyouts and other methods since the company was formed through a 2021 merger between Fiat Chrysler and French automaker PSA Groupe.
The cuts are part of a push to achieve Stellantis’ Dare Forward 2030 strategic plan, which aims, among other things, to boost profits and double the automaker’s sales to 300 billion euros, or $335 billion, by then.
“While we understand this is difficult news, these actions will better align resources while preserving the critical capabilities needed to protect our competitive advantage as we continue to focus on executing our electric vehicle product offensive and strategic plan Dare Forward 2030,” the company said.
Don’t miss these stories from CNBC PRO:
Source link
2024-03-22 17:41:18
www.cnbc.com
