Stellantis (NYSE:STLA) layoffs are on the way as the automotive company prepares to cut a portion of its workforce.
According to recent reports, Stellantis is looking to reduce its headcount by 3,5000 workers. The report claims that the company is planning for these job cuts to affect hourly workers in the U.S.
Stellantis isn’t planning to just lay off employees. The company intends to facilitate its job cuts via buyouts of veteran workers at the company. That includes a $50,000 buyout for workers that have been employed since before 2007.
Stellantis hasn’t confirmed these layoffs yet, and leaders at the company are refusing to comment on the reports. However, a leaked letter claims the layoffs could start on June 30, 2023, and continue throughout the rest of the year.
What’s Behind the Stellantis Layoffs
According to that leaked letter, Stellantis intends to replace the laid-off employees with those currently on indefinite layoff. This comes as Stellantis prepares for negotiations with The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) later this year.
Of course, there’s also the current economy to consider. Inflation continues to rise, and interest rates are increasing alongside it. This has many companies laying off employees to reduce costs. Stellantis’ buyout offer could help with that as it would cut senior workers, who likely make more than their younger counterparts.
STLA stock is up slightly as of Wednesday morning!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
