Report: Stellantis Could Be Eying Massive Layoffs to Cut Operating Costs

Chris Teague
by Chris Teague

Stellantis is looking to cut costs, and its next moves could have a significant impact on its Detroit-area workforce. Company CEO Carlos Tavares vowed to implement measures to reduce the automaker’s expenditures, which could come with job cuts.

Tavares said, “We have at least two plants that need a significant turnaround, at least two.”

To accomplish that feat, Tavares called in reinforcements from Stellantis’ European operations and said the company would focus on EVs and cost management to better compete with the growing threat from China.

Overall, Tavares wants to slash 30 percent of Stellantis’ costs, which could amount to thousands of layoffs. Outsourcing engineering and other departments to countries with lower labor costs will help reduce some of the automaker’s overhead, much of which comes from the top-earning Chrysler Group (Chrysler, Dodge, Jeep, and Ram) in Detroit. The layoffs may also come with a reduction in Stellantis’ Detroit-metro real estate footprint as the company sheds a significant portion of its workforce.

One of the most interesting parts of this situation is that Stellantis, and by extension, the Chrysler Group, is increasingly considered a foreign company instead of a traditional American automaker. The company’s shift to relying on European executives for this turnaround effort and its willingness to move important parts of its business unit overseas indicate that we could be seeing a foundational shift in how Americans and car buyers see Stellantis products.

[Images: Stellantis]

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Chris Teague
Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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  • Zipper69 Zipper69 on Jun 24, 2024

    Current radio ads blare "your local Chrysler, Dodge, Jeep, Ram dealer" and the facias read the same. Is the honeymoon with FIAT over now the 500 and big 500 have stopped selling?

  • Ptcruiser Ptcruiser on Jun 26, 2024

    If this can reach Stellantis management, the Charger needs to spin off multiple models. Keep Charger 2 Dr with nice downforce. 4dr & wagon with 1969 Coronet styling cues and police persuit. Thus police input on trunk size and design. How About for Chysler, New Yorker, Newport models with 1965-66 styling cues. Pacifica van to spin off FWD Hybrid Concord car. Platforms needs more body styles. So it's not one body to the public and expect that one body to meet production minimum amount to break even. RAM vans need to be hybrid. What was wrong with 2 mode hybrid transmission?

  • Bd2 Absolutely not - do not want to support a fascist, totalitarian regime.
  • SCE to AUX The original Capri was beautiful. The abomination from the 90s was no Capri, and neither is this.It looks good, but too similar to a Polestar. And what's with the whacked price?
  • Rover Sig Absolutely not. Ever.
  • EBFlex No. I buy as little Chinese products as possible.
  • John "...often in a state of complete disarray on the roads" What does that mean? Many examples in poor repair? Talk about awful writing.