To cut costs and keep vehicle prices down, Stellantis makes buyout offers to US white-collar workers
Jeep and Ram maker Stellantis says it will offer buyout packages to many of its U.S. white-collar workers just five days after the company’s CEO said the auto industry is in the middle of a significant storm
DETROIT — Jeep and Ram maker Stellantis says it will offer buyout packages to many of its U.S. white-collar workers just five days after the company's CEO said the auto industry is in the middle of a significant storm.
The company told salaried workers that eligible employees will get individual offers in mid-August. The offers will be limited to certain job functions that Stellantis not identify. It also wouldn't say by how much it wants to cut the salaried workforce. The company has about 11,000 salaried workers in the U.S.
It wasn't clear whether similar offers would be made in other countries.
In a statement Tuesday, Stellantis said it faces inflationary pressures at the same time as it tries to make affordable vehicles for its customers. “We remain focused on taking the necessary actions to reduce our costs to protect the long-term sustainability of the company,” the statement said.
The company said in an email to employees that it will provide severance pay based on years of service, as well as cash lump sum payments to help cover health care costs. It also will provide job placement services, the email said.
“We must continue to adapt by streamlining operations and finding efficiencies that will enhance our competitiveness to ensure our future sustainability and growth,” the email said.
After a disappointing first-half earnings report on Thursday, CEO Carlos Tavares said the industry is going to be in turmoil. Net profits were down 48% compared with the same period last year.
Tavares also told reporters
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