Stellantis Offers Buyouts to U.S. Office Workers

Stellantis, the parent company of Jeep and Ram, has announced plans to offer buyout packages to a significant portion of its U.S. white-collar workforce, just days after CEO Carlos Tavares highlighted the auto industry's ongoing struggles. The company will extend individual offers to eligible salaried employees in mid-August, although it has not disclosed the specific job functions targeted or the number of positions it aims to eliminate from its approximately 11,000 salaried workforce. In a statement, Stellantis cited inflationary pressures and the need to produce affordable vehicles as key factors driving this decision. The company emphasized its commitment to reducing costs to ensure long-term sustainability. Employees receiving buyout offers will be provided with severance pay based on their years of service, cash lump sums for healthcare coverage, and job placement services, according to an internal email. Stellantis has reported a staggering 48% decline in net profits compared to the previous year, prompting concerns about inventory management and pricing strategies. Tavares acknowledged that the company had allowed inventory levels to rise excessively and admitted that previous plans to address this issue fell short. He noted that high sticker prices are deterring potential customers, despite the availability of discounts. This move follows a similar initiative in November 2023, when Stellantis offered buyouts and early retirement options to 6,400 nonunion salaried workers, though the company has not disclosed how many accepted those offers.