Work from home turned to layoffs - Here’s how Stellantis conducted mass termination of 400 employees
A Stellantis employee received an unusual directive from the company, requiring remote work for a specific day. More than 400 employees were notified on Thursday, stating the need for crucial operational meetings that demanded "specific attention and participation."
The notice explained that to ensure effective participation, a mandatory remote work day was implemented, instructing employees to work from home unless directed otherwise by their manager.
However, the following day, on Friday, the employees were informed of their layoffs via a video call. Among those affected were salaried non-union employees in technology and engineering roles in the United States.
Stellantis, renowned for producing car brands like Jeep, Ram, Chrysler, and Dodge, issued a statement addressing the situation. They emphasised the necessity for structural adjustments in response to unprecedented challenges and heightened competition in the global auto industry.
Stellantis reaffirmed its commitment to enhancing efficiency and optimising cost structures across the organisation. An anonymous mechanical engineer shared his account with WJBK Fox, a Detroit-based TV station, shedding light on the events.
He described a mass termination of employees during the video call, suggesting that the layoffs were part of a broader initiative to relocate jobs to "low-cost countries" like India, Mexico, and Brazil.
In a statement to the Wall Street Journal on Thursday, Stellantis reiterated its commitment to providing affected employees with comprehensive separation packages and transition assistance.
The company clarified that the reduction in the workforce aimed to preserve critical skills necessary to implement its plans for electric vehicle production. Stellantis plans to invest approximately $50 billion by the end of the decade to electrify its vehicle lineup.
Despite a slowdown in electric vehicle (EV) sales growth, the company has observed a notable increase in hybrid demands. To meet evolving consumer preferences, Stellantis intends to introduce eight EV models in the U.S. by the year's end, with plans for over two dozen models by 2030.
