Stellantis Enforces Mandatory Remote Work Day, Lays Off Over 400 US Employees
Stellantis, the Italian American automaker, has undertaken significant restructuring measures by removing employees from over 400 positions across its engineering, software, and technology divisions in the United States. The move, as reported by Fortune magazine, coincided with the company's decision to enforce a mandatory remote workday on March 22.
In a notice to employees, Stellantis explained, “We will be holding important operational meetings that require specific attention and participation. To ensure everyone can effectively participate, we have decided to implement a mandatory remote workday.”
During the remote call, white-collar workers were taken aback when they were informed of their layoffs. A mechanical engineer, who was among those laid off during the call, described it as a "mass firing of everybody that was on the call," as reported by Fox News.
The company's rationale behind the layoffs includes outsourcing jobs to countries like India, Mexico, and Brazil. This strategic move aims to leverage the cost-efficiency and profitability associated with operating in these regions.
Responding to inquiries, Stellantis told the Wall Street Journal that the laid-off workers have been provided with a comprehensive separation package and transition assistance. In a statement, the automaker underscored its commitment to making necessary structural decisions to enhance efficiency and optimise its cost structure amidst unprecedented uncertainties and heightened competitive pressures in the global automotive industry.
