Stellantis NV is offering buyouts to salaried employees as part of a bid to cut costs after net income fell during the first half of the year.
Voluntary separation packages are available to non-union employees in the U.S. at the vice president level and below in “certain positions,” according to an internal memo obtained by The Detroit News. Unlike previous offers, there is no minimum years of service requirement.
Eligible employees will receive an email about how to access their individual offers in mid-August, with an email stating that they will include an “enhanced benefits package that was not previously available.”
The maker of Chrysler, Dodge, Jeep and Ram cars last week reported earnings of $6.1 billion, down 48% for the first six months, on net revenue of $92.2 billion, down 14% from a year earlier. Lower vehicle sales and product mix challenges contributed to the decline, with Chief Executive Carlos Tavares saying the automaker needs to make cuts that could include putting vehicle brands on the chopping block.
The memo — signed by Tobin Williams, senior vice president of human resources and transformation for North America — said the goal is to meet headcount reductions through attrition and buyout, but added that involuntary layoffs may be needed if those goals aren’t met through voluntary means.
“As Stellantis continues to address inflationary pressures and, more importantly, provide consumers with affordable, high-quality vehicles, we remain focused on taking the necessary actions to reduce our costs to protect the long-term sustainability of the company,” Stellantis said in a statement. “One of these actions is offering a voluntary separation package to U.S. employees in certain positions.”
The email specified that the packages will include months of severance based on years of service starting Sept. 30, 2024. That starts after two months for those with less than four years of experience at the company and goes up to 13 months for those with more than 20 years.
Stellantis will also provide a lump sum to help cover health care costs based on years spent at the automaker. There will also be a 3% corporate 401(k) contribution for employees with less than three years of vesting service. And human resources consultant Lee Hecht Harrison will provide outplacement services for three months as well.
Stellantis has routinely made buyout offers to salaried workers over the past few years, including two rounds last year in the spring and November. The automaker also agreed last year to a new contract with the United Auto Workers for $50,000 in retirement incentive plans for hourly workers in 2024 and 2026.
Tenth: @Brenna C. Noble
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