Stellantis, new cuts to administrative employees: after Italy, now the USA

Stellantis’ workforce reduction and adjustment program continues not only in Italy but also in the United States. The group in fact intends to cut administrative employees also in the USA, with the aim of reducing active staff by 6,400 units out of a total of say 12,700 American employees. A figure that corresponds to almost half of Stellantis’ workforce in the country, with the company having sent letters to potential interested parties to encourage a voluntary exit through incentives.

Cost reduction objective

The offer to leave the Stellantis group was addressed to staff who are not members of the UAW union (with which the company led by Carlos Tavares had tensions over the renewal and adaptation of contracts until a few days ago) and who are willing to within the company for at least 5 years. Stellantis’ objective is to reduce costs to encourage the transition towards electric mobility, as also demonstrated by the note that the group sent to the American press.

The location of Stellantis

“As the U.S. auto industry continues to face challenging market conditions, Stellantis is taking the structural actions necessary to protect its operations and the company. As we prepare for the transition to electric vehicles, Stellantis will offer a favorable package of voluntary separation benefits to help non-unionized employees who wish to separate or retire from the company pursue other interests.”

Stellantis’ action in the USA and Italy

The operation is therefore not linked in any way to the promised investments, with 19 billion over the next four and a half years, but the voluntary exit option is also part of the contract proposed to the UAW. Stellantis offers incentives based on length of service, age and job performed but also bonuses relating to lack of notice or the advance of three months’ salary. An initiative similar to the one proposed in Italy to around 15,000 employees, with the aim of obtaining the approval of at least 2,000 of these to adjust the workforce. To date, according to what was reported by Corriere della Sera, there have already been 500 workers who have said yes, most of them from the Mirafiori factory.