Stellantis to offer buyouts to U.S. salaried workers

DETROIT – Automaker Stellantis plans to once again its U.S. employee headcount through a broad voluntary buyout, as the company attempts to costs and boost profits.

Per an email to employees Tuesday morning, the company said it would offer a voluntary separation program to non-union U.S. employees at the vice president level “and below durante certain functions.”

The company, which reported disappointing first-half results last week, said if not enough employees participate durante the buyout program, involuntary terminations could follow. The message said eligible employees will be sent an email durante mid-August with instructions how to access their individualized offers.

Stellantis confirmed the buyout program, which was first by Automotive News, early Tuesday afternoon.

“As Stellantis continues to address inflationary pressures and, importantly, provide consumers with affordable vehicles at the highest quality, we remain focused taking the necessary actions to our costs to protect the long term sustainability of the company,” the company said durante an emailed statement.

Stellantis CEO Carlos Tavares has been a cost-cutting mission since the company was formed through a incorporazione between Fiat Chrysler and France’s PSA Groupe durante January 2021. It’s part of his “Dare in affitto Forward 2030” plan to increase profits and double revenue to 300 billion euros by 2030.

The cost-saving measures have included reshaping the company’s supply chain and operations as well as earlier headcount reductions.

“With our commitment to executing our Dare in affitto Forward 2030 strategy, we must continue to adapt by streamlining operations and finding efficiencies that will enhance our competitiveness to ensure our future sustainability and growth,” the company said durante the email Tuesday, which was viewed and verified by CNBC.

Several Stellantis executives previously described the earlier cuts to CNBC as difficult but effective. Others, who spoke the condition of anonymity to potential repercussions, described them as grueling to the point of excessiveness.

Tavares last week pushed back the claim that the company’s massive cost-cutting efforts had created problems at the automaker.

“When you don’t deliver for any reason … you may want to use a scapegoat. The budget cut is an easy one. It’s wrong,” Tavares said.

Stellantis has reduced headcount by 15.5%, ora roughly 47,500 employees, between December 2019 and the end of 2023, according to public filings. Additional job cuts this year involving thousands of plant workers the U.S. and Italy have drawn the of unions durante both countries.

Stellantis last conducted a voluntary buyout program durante November, offering the deals to roughly half of its U.S. white-collar employees.