Stellantis offers buyouts to roughly half of U.S. salaried workers

[2Driver]

Geez that’s a lot of people. Says due to cost of EVs and the new union contract…. How do you operate with a cut like that?



DETROIT — Chrysler parent Stellantis is offering buyouts to roughly half of its U.S. white-collar employees to reduce headcount and cut costs for the automaker’s North American operations.

The voluntary separation packages will be offered to 6,400 of its 12,700 nonbargaining unit U.S. employees with five or more years of employment, the company said Monday.

The move marks the latest cost-cutting efforts for the U.S. auto industry, as companies attempt to reduce costs amid economic concerns and billions of dollars in new investments for emerging technologies such as electric vehicles. Both General Motors and Ford Motor also have cut salaried workers over the past year.

“As the U.S. automotive industry continues to face challenging market conditions, Stellantis is taking the necessary structural actions to protect our operations and the Company,” Stellantis said in an emailed statement. “As we prepare for the transition to electric vehicles, Stellantis announced today that it will offer a voluntary separation package to assist those non-represented employees who would like to separate or retire from the Company to pursue other interests with a favorable package of benefits.”

A Stellantis spokeswoman declined to comment on how many people or total costs the company would like to cut. She also declined to comment on whether involuntary layoffs are planned if not enough employees accept the buyouts.

Stellantis North American Chief Operating Officer Mark Stewart informed employees Monday of the program, which was first reported by The Wall Street Journal.

Employees will have until Dec. 8 to accept buyout offers, the company said.

 

[17 10 Flat]

Cut's will be coming to everyone. The salaried are first.

 

[LargeOrangeFont]

How do you operate? They will figure it out. There is lots of fat to trim in all these companies. My guess is that is won’t stop them from producing a single car.

 

[monkeyswrench]

How do you operate? They will figure it out. There is lots of fat to trim in all these companies. My guess is that is won’t stop them from producing a single car.

No, they will continue. Have done so every time they've made cuts. That said, there may be 6400 people not buying new cars this year...and probably never buying a Chrysler again.

 

[LargeOrangeFont]

No, they will continue. Have done so every time they've made cuts. That said, there may be 6400 people not buying new cars this year...and probably never buying a Chrysler again.

The packages they are offering are voluntary at this time, so as you can imagine, not all will take the offer.

That means layoffs will be coming however.

 

[Spudsbud]

Lots of fat in the big 3. I heard Elon say he cut roughly 80% of Twiiter after he got control. company still ran fine.
bunch of people attending meetings all day long.

 

[MK1MOD0]

Which what is happening, it won’t be long before these companies move completely offshore. They will still sell in the US, but will not be us companies, nor will they manufacture in the US. Greed will be sure to that.

 

[paradise]

Which what is happening, it won’t be long before these companies move completely offshore. They will still sell in the US, but will not be us companies, nor will they manufacture in the US. Greed will be sure to that.

Is it greed or US policymakers?

 

[bonesfab]

Which what is happening, it won’t be long before these companies move completely offshore. They will still sell in the US, but will not be us companies, nor will they manufacture in the US. Greed will be sure to that.

Greed by who? The manufacturers? The unions? or the employee's?? Let's not forget the government who I am sure have over regulated them to death at this point. So send it all offshore where there are 1/10 or less of the regulations and employees with out union representation to make the product.

 

[MK1MOD0]

Is it greed or US policymakers?

Both.

 

[MK1MOD0]

Greed by who? The manufacturers? The unions? or the employee's?? Let's not forget the government who I am sure have over regulated them to death at this point. So send it all offshore where there are 1/10 or less of the regulations and employees with out union representation to make the product.

Yes.

 

[17 10 Flat]

The packages they are offering are voluntary at this time, so as you can imagine, not all will take the offer.

That means layoffs will be coming however.

I can only speak to Ford. The offer is best it gets. Turn it down you are gone anyway without the same payout.

 

[Sharky]

Gotta pay for those UAW workers & their new contract somehow. Don't take it from the share holders. . . . Board members and C-suite people would lose their jobs if share holders took a hit.

I really feel sorry for the guys still in the trenches at the dealer service departments. Warranty labor ops will be dropping once again.

Dealers and especially the service departments are going to be hit hard.

 

[monkeyswrench]

Well, it should get cut from the labor, as they were the ones that made the biggest draw from the corporation. The shareholders didn't want a strike, and the suites and ties know full well it hurts the whole. I'll be blue collar till I die, but math is pretty simple. The union may have made the biggest single move towards their own obsolescence.

 

[TPC]

White label China built units rebadged with their name on them is probably the plan.

 

[Cdog]

Seems like the shoes are starting to drop. They should have never been bailed out the last time.

 

[LargeOrangeFont]

Lots of fat in the big 3. I heard Elon say he cut roughly 80% of Twiiter after he got control. company still ran fine.
bunch of people attending meetings all day long.

He did. It was a ghost town for awhile. Turns out you don’t need a ton of people to run a messaging application

 

[DarkHorseRacing]

I don’t see why the big three put up with humans assembling cars. Switch it out to robots and costs come way down, productivity goes way up and quality control becomes a question of how precise the robots can operate.

Then spend the savings on hiring actual engineers to design good, high quality vehicles and maybe they won’t be in this position.

 

[76sanger]

Companies are losing their ASS trying to produce and sell the EV cars to appease these radical idiots that are pushing this "one" agenda. Instead of being able to keep diesel, gas and electric cars and let "the people" decide what they would like to buy and drive.

 

[LargeOrangeFont]

I don’t see why the big three put up with humans assembling cars. Switch it out to robots and costs come way down, productivity goes way up and quality control becomes a question of how precise the robots can operate.

Then spend the savings on hiring actual engineers to design good, high quality vehicles and maybe they won’t be in this position.

Ummm Unions is why, but there won’t be any “savings they will spend on engineering” in that scenario.

 

[17 10 Flat]

Well, it should get cut from the labor, as they were the ones that made the biggest draw from the corporation. The shareholders didn't want a strike, and the suites and ties know full well it hurts the whole. I'll be blue collar till I die, but math is pretty simple. The union may have made the biggest single move towards their own obsolescence.

Of course the union leaders don't tell the rank and file the truth. The current workers only think I want it all now. UAW was once over a million strong, now under 150K. Current workers are killing jobs with their demands for possible future American workers.

 

[FROGMAN524]

This is no different than going to a Circle K and having to check out with some robot that scans your items. When you have millions of uneducated people that want to make $100/hour for doing almost absolutely nothing, this is the result; not to mention all of the federal and state regulations that they’ve been hit with.

The wuhan fauci lab flu, “Bidenomics” and its voters have made the economy so nobody can afford $100,000 trucks or $50,000 EVs anyway and If Elon was running the big 3, they’d have half the employees, produce the same amount of vehicles and sell them for half as much.

But, as Biden would say, if you were once a coal Miner, pipeliner or installing hubcaps for a living, you can go learn to code! Aka, get fucked!

 

[17 10 Flat]

How do you operate? They will figure it out. There is lots of fat to trim in all these companies. My guess is that is won’t stop them from producing a single car.

You are correct of course, but probably an increase in recalls and warranty work.

 

[LargeOrangeFont]

You are correct of course, but probably an increase in recalls and warranty work.

Number one, they aren’t slashing their non union workforce by half. They offered a package to half.

I don’t really see how slashing non union mostly office jobs translates to more recalls. It has not in the past when automakers did layoffs.

 

[Markus]

Number one, they aren’t slashing their non union workforce by half. They offered a package to half.

I don’t really see how slashing non union mostly office jobs translates to more recalls. It has not in the past when automakers did layoffs.

Like the man said.

Most likely lots of unproductive white collar workers at Stellantis.

 

[foxfam312]

How do you operate? They will figure it out. There is lots of fat to trim in all these companies. My guess is that is won’t stop them from producing a single car.

AI is going to take so many white collar jobs, AI is dangerous.

 

[Singleton]

Number one, they aren’t slashing their non union workforce by half. They offered a package to half.

I don’t really see how slashing non union mostly office jobs translates to more recalls. It has not in the past when automakers did layoffs.

It’s half of the US workforce. Stellantis wants the jobs at their European locations, not the US.
I think they want to get 25 to 40% of that 6k to accept. Then in 2024, the remaining positions will be reallocated to the Netherlands and they either relocate or get another package (but these jobs will be lost via a RIF).

 

[Singleton]

AI is going to take so many white collar jobs, AI is dangerous.

Maybe, but I know the way we are incorporating AI, it will only recommend the action to take, and require someone to review and approve that recommendation. Maybe a 20-35% reallocation of white collar jobs over the next 10-15 years.

The AI feature I like the most = based on how I document my task updates to goals, the system automatically drafts my year-end summary.

 

[17 10 Flat]

Number one, they aren’t slashing their non union workforce by half. They offered a package to half.

I don’t really see how slashing non union mostly office jobs translates to more recalls. It has not in the past when automakers did layoffs.

Salaried workers are the Product Development employees. They are the designers of software, hardware and the testers. They are the ones that go on test/development trips. The auto companies are taking shortcuts right now. Some computer modeling instead of real life testing.
Warranty work and recalls are up. I don't have real numbers anymore. Usually development areas have one maybe 2 go to people. They hold up the heavy end of the stick. Do we use 2 or 4 or 6 sample sizes that number goes down and down.

 

[Bigbore500r]

How do you operate? They will figure it out. There is lots of fat to trim in all these companies. My guess is that is won’t stop them from producing a single car.

The quality of vehicles will fall further in rank
Be prepared for some amazining engineering decisions from Chrysler

"Hey Jim......how should we design this for future access"
Jim - "I dunno, fuck it i got other shit to worry about today"

 

[Sportin' Wood]

When you are a publicly traded company, SG&A shows up in the balance sheet as a leading indicator, and if this number creeps up beyond a certain threshold, the investors view it negatively. When sales are good this number may not appear to be a problem, but when sales slump, that percentage increases, and they need to make adjustments. If you have a strategy in which topline revenue is going to be reduced in future years, the outcome is SG&A reductions. It is really this simple.

XX% Growth
XX% SG&A
XX% OP

If you can achieve the appropriate percentage in these categories, you can satisfy investors.

Control SG&A against the Forecast. If you want aggressive growth, you could knock either SG&A or OP out of whack; in some cases, that is acceptable if you realize the growth target, but at some point, you need to regain the OP if you let that slide.

I don't think specifically AI is driving this decision and more of the percentage against forecast. Managers will need to explore solutions to doing more with less, and AI may be a tool they use, but I don't think it would be the other way around that assumption of AI tools can allow a change to the white-collar workforce.

The greed they are trying to satisfy is the shareholders.

 

[JDKRXW]

Cut's will be coming to everyone. The salaried are first.

Nope; salaried are second.
Work from home will be first.

 

[mbrown2]

Its unfortunate but you had to see it coming with Covid....manufactures volume was down, per sales prices were up and now we have spike in inventories again, prices dropping, incentives increasing but interest rates up....Hard to endure this sort of supply chain cycle and keep your investors happy...

At the end of the day more people out on the streets is not a good thing but more bad news such as this will bring interest rates down and check the fed on any rate increases...

Yeah, it may spur prices up in homes, but if more white collar folks are impacted then it may have the opposite effect on homes.

Although the math is for an auto manufacturing job, there is a job multiplier ... for every 1 auto car/truck factory worker job there is 11 supporting jobs that go along with that.... Job multipliers may be less in other industries but they will suffer as more companies tighten their belts...In my industry we have been tightening our belt since interest rates rose in late 2021... It will be interesting to see the next 12 months leading to the election....

 

[JDKRXW]

Salaried workers are the Product Development employees. They are the designers of software, hardware and the testers. They are the ones that go on test/development trips. The auto companies are taking shortcuts right now. Some computer modeling instead of real life testing.
Warranty work and recalls are up. I don't have real numbers anymore. Usually development areas have one maybe 2 go to people. They hold up the heavy end of the stick. Do we use 2 or 4 or 6 sample sizes that number goes down and down.

100%. I see this in Ag and Construction equipment manufacturing.
The development is still getting done - but not in house by the OEM's
It's surprising what info and the amount of product testing that these guys are relying on suppliers for.

 

[17 10 Flat]

Nope; salaried are second.
Work from home will be first.

Actually older high seniority white guys regardless of work location go first.

 

[LargeOrangeFont]

Actually older high seniority white guys regardless of work location go first.

This.

Work from home people are probably salary anyway.

 

[LargeOrangeFont]

The quality of vehicles will fall further in rank
Be prepared for some amazining engineering decisions from Chrysler

"Hey Jim......how should we design this for future access"
Jim - "I dunno, fuck it i got other shit to worry about today"

So it will be exactly the same then?

 

[LargeOrangeFont]

It’s half of the US workforce. Stellantis wants the jobs at their European locations, not the US.
I think they want to get 25 to 40% of that 6k to accept. Then in 2024, the remaining positions will be reallocated to the Netherlands and they either relocate or get another package (but these jobs will be lost via a RIF).

Yes. Unions and mergers have consequences.

I’m sure they will keep a US HQ. All foreign automakers do.

 

[Singleton]

Yes. Unions and mergers have consequences.

I’m sure they will keep a US HQ. All foreign automakers do.

100%, but not with 12k employees. They want the US HQ around 4K is what I read when the merger occurred.
This has all been planned, but using the union contract is a good way to justify it in the news

 

[2Driver]

I hope the people that came up with the “Auto stop/start with the dual battery” and the jeep front axle disconnect take the package. Bu bye.

 

[Bigbore500r]

So it will be exactly the same then?

The thought that the 3.6 pentastar could effectively get worse scares me greatly

 

[FROGMAN524]

Exclusive: GM snatches key Tesla gigacasting supplier — Reuters

If you can't beat them, buy them.

stocks.apple.com

 

[LargeOrangeFont]

The thought that the 3.6 pentastar could effectively get worse scares me greatly

It does not scare me, I don't own one

 

[Bigbore500r]

It does not scare me, I don't own one

I tried this as a fix.....didn't work

 

[LargeOrangeFont]

I tried this as a fix.....didn't work

View attachment 1303033

You have to cut a hole in the hood for it to work.

 

[liquid addiction]

With all of the emission technology, how much do the modern cars add to their pollution agenda? It can not be near as much as all the $hit that has do be done to produce a fukn battery!!

 

[pronstar]

Stellantis is made up of a dozen or so car brands, all coming under one ownership.

They didn’t trim all of the redundancies when the companies merged.

The 6,400 positions are a drop in the bucket, they’ve got 250k employees globally and tens of thousands of those are redundant positions.

 

[monkeyswrench]

With all of the emission technology, how much do the modern cars add to their pollution agenda? It can not be near as much as all the $hit that has do be done to produce a fukn battery!!

I think it's much less about the trees, and more about the control.

 

[Bigbore500r]

You have to cut a hole in the hood for it to work.

Ahh....Cleetus to the rescue!

 

[Taboma]

I think it's much less about the trees, and more about the control.

Control seems to be proportional to the increase in population.
Simply my opinion based on observational comparison made during my lifetime.