Stellantis CEO Carlos Tavares is burnishing reputation as a cost-cutter with another round of buyout offers for salaried executives. He’s also warning there could be a round of layoffs if the buyouts don’t achieve the reduction goals.
Stellantis CEO Carlos Tavares and his reputation for cutting employee headcount is coming to the fore — again this week.
Word of the latest round of headcount reductions came via an email to employees Tuesday morning. The company said it would offer “a voluntary separation program” to white-collar employees at the vice president level and below.
The move, which was first reported by Automotive News, follows the company’s less-than-favorable first-half earnings results last week.
“As Stellantis continues to address inflationary pressures and, importantly, provide consumers with affordable vehicles at the highest quality, we remain focused on taking the necessary actions to reduce our costs to protect the long term sustainability of the company,” the company said in an emailed statement.
Next actions
The company emailed workers Tuesday to inform them of another round of voluntary buyouts — and the possibility of layoffs.
The missive noted eligible employees would be informed via email next month to outline their options and provide instructions on next steps, if those workers elect to take the buy out.
The cuts come as a surprise to virtually no one as Tavares enjoys a reputation for cutting costs using a variety of methods, including voluntary and involuntary employee separation.
He outlined his plans for a leaner, more efficient company in his Dare Forward 2030 in 2022.
“With our commitment to executing our Dare Forward 2030 strategy, we must continue to adapt by streamlining operations and finding efficiencies that will enhance our competitiveness to ensure our future sustainability and growth,” the company said in the email Tuesday, reported CNBC.
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Fewer employees
Stellantis could layoff hourly workers in the near future, according to CEO Tavares.
Stellantis has cut its headcount by 15.5%, or roughly 47,500 employees, using repeated headcount reductions beginning in December 2019, according to public filings.
The automaker engaged in additional job reductions earlier this year in the U.S. and Italy. The elimination of thousands of hourly jobs angered the unions in Europe and U.S.
The automaker last conducted a voluntary buyout program in November, offering the deals to roughly half of its U.S. white-collar employees.
Observers of Stellantis CEO Tavares aren’t surprised. When he headed up PSA, the company that acquired Fiat Chrysler, he did the same thing. In fact, when the French automaker acquired General Motors’ Opel unit, which had not been profitable in a decade, he pushed it into the black within one year of the acquisition, in part, through the use of substantive job cuts.
Tavares was a hero till he wasn’t.
These hourly union packages were a big joke and if they actually offered a good enough package they would get a bunch of us high seniority union workers to get out offer a good package and you reduce by the thousands overnight show a profit get the people to retire early and they will leave