Chrysler Parent Company Stellantis Let Go of 400 Employees Following Uncertainty

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Stellantis is implementing layoffs for approximately 400 salaried employees in the U.S. across its engineering, technology, and software units, as part of a cost-cutting initiative in response to what it terms challenging market conditions.

Announced on Friday, the layoffs represent about 2% of the workforce in those units following thorough organizational reviews. As of the end of last year, Stellantis employed 11,800 salaried workers in the U.S.

The layoffs will take effect on March 31.

In an emailed statement, the company stated, “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.”

While the automaker declined to specify the exact number of affected employees, a source familiar with the situation confirmed the figure to be around 400, as initially reported by The Wall Street Journal on Friday.

The layoffs coincided with a “mandatory remote work day” for U.S. salaried, nonunion employees in Stellantis’ engineering and technology division, according to an internal announcement verified by two sources who spoke on condition of anonymity.

These layoffs represent the latest cost-cutting measures undertaken by Stellantis CEO Carlos Tavares.

Part of the broader “Dare Forward 2030” strategic plan, the layoffs are aimed at achieving Stellantis’ objectives, which include increasing profits and doubling revenue to 300 billion euros ($335 billion) by 2030.

“While we understand this is difficult news, these actions will better align resources while preserving the critical skills needed to protect our competitive advantage as we remain laser-focused on implementing our EV product offensive and our Dare Forward 2030 strategic plan,” the company emphasized.

Nate O'Hara
Nate O'Hara
Nathan is a seasoned commerce writer with a passion for unraveling the intricacies of the business world and distilling them into engaging narratives. During his academic journey, he delved deep into subjects like economics, marketing, and entrepreneurship, honing his analytical skills and developing a keen understanding of market dynamics.

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