Stellantis offers voluntary buyouts to U.S. salaried employees

Stellantis is launching a voluntary job separation program for some U.S. workers in an effort to avoid layoffs.

Driving the news: On Tuesday morning, Stellantis employees received a notice explaining how the initiative would work. The message was shared with CDG News by a source familiar with the matter who wishes to remain anonymous.

• The automaker will allow “non-represented employees at the VP level and below in certain functions” to sign up for a new voluntary separation package.

• Stellantis is offering benefits for those who join the program including severance pay, outplacement services, and additional lump sum payments.

Between the lines: While not directly mentioning layoffs, Stellantis said it may be forced to use “involuntary actions” if it could not achieve its targets voluntarily.

• The company did not specify how many employees it’s looking to scale back on.

• Qualified workers will receive a communication explaining how to sign up for the program in mid-August.

Zooming out: The notice to Stellantis’ team comes after a week of particularly negative press.

• Net profits were down 48% in the first half of 2024, hurt by weak demand in the U.S.

• Last week, the company said it may resort to closing down underperforming brands.

Bottom line: While automakers were mostly disappointed with their quarterly results, Stellantis seems to be in the worst shape. Given the extent of its challenges, this voluntary program is likely the first in a series of cost-cutting measures.

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