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Chrysler parent Stellantis lays off 400 US workers due to ‘unprecedented uncertainties’

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The Stellantis sign is seen outside the FCA Headquarters and Technology Center in Auburn Hills, Michigan on January 19, 2021.

Jeff Kowalsky | Afp | Getty Images

DETROIT — Stellantis The U.S. automaker is laying off about 400 workers across its engineering, technology and software units to cut costs as the automaker faces what it calls tough market conditions.

Stellantis said Friday that the layoffs would affect about 2% of employees in those units “following rigorous organizational reviews.” Stellantis employed 11,800 workers in the United States at the end of last year.

The discounts take effect on March 31.

“As the automotive industry continues to face unprecedented uncertainties and increased competitive pressures around the world, Stellantis continues to make appropriate structural decisions within the company to improve efficiency and optimize our structure costs,” the company said in an emailed statement.

A spokeswoman for the automaker declined to give the exact number of laid-off employees. A source close to the matter confirmed there were around 400 workers, a figure first reported Friday by The Wall Street Journal.

The layoffs took place during a “mandatory remote work day” for non-union U.S. employees in Stellantis’ engineering and technology organization, according to an internal announcement confirmed by two sources who were not authorized to talk about these actions.

The action is the last by Stellantis CEO Carlos Tavares to cut costs through layoffs, buyouts and other methods since the company’s founding created by a merger from Fiat Chrysler and French automaker PSA Groupe in 2021.

The cuts are part of an effort to achieve Stellantis’ “Dare Forward 2030” strategic plan, which aims to increase profits and double the automaker’s turnover to 300 billion euros, or 335 billion dollars, by then, among other objectives.

“While we understand this is difficult news, these actions will better align resources while preserving the critical skills needed to protect our competitive advantage as we remain focused on executing our offensive of electrical products and our Dare Forward 2030 strategic plan,” the company said.

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