By Albertina Torsoli and Gabrielle Coppola | Bloomberg
Stellantis NV will offer voluntary buyouts to US employees as the carmaker looks to cut costs amid slumping profits.
Non-unionized US workers from vice president level and below in certain functions can opt for the package, which is intended to “assist those interested in pursuing other career options or retirement,” Stellantis said in a message sent on Tuesday to employees that was seen by Bloomberg. There will be no minimum service requirement to be eligible for the offer, unlike previous programs, the letter said.
A Stellantis media representative declined to comment on the total number of job cuts targeted.
Automakers including the maker of Jeep SUVs and Ram pickups are under pressure from waning demand from consumers squeezed by rising expenses and huge investments needed to electrify their vehicles. First-half earnings fell sharply at the Amsterdam-based automaker as soft demand fueled lower vehicle sales in the US and Europe.
Chief Executive Officer Carlos Tavares has pledged a further €500 million ($540 million) in savings in the second half compared with the first six months of 2024.
The company has also already cut about 400 salaried engineering jobs in the US earlier this year. Stellantis, increasingly criticized by analysts for its lack of innovative new car models, on Tuesday announced it has started shipments of China-made Leapmotor vehicles to European ports.
The Stellantis letter was reported earlier by Automotive News.
