Layoffs 2024: Automaker Enforces Mandatory WFH, Then Announces to Lay Off 400 Employees via Call
Stellantis, the parent company of Chrysler, recently enforced a mandatory work-from-home and announced job cuts for about 400 of its employees during a remote meeting the following day. The affected employees, who are salaried, nonunion workers in the technology and engineering sectors in the United States, received a notice informing them of the mandatory remote work day. The notice cited “important operational meetings that require specific attention and participation” as the reason for the directive.
According to a report on Fortune Magazine, Stellantis, known for brands such as Jeep, Ram, Chrysler, and Dodge, defended its decision, stating, “As the auto industry continues to face unprecedented uncertainties and heightened competitive pressures around the world, Stellantis continues to make the appropriate structural decisions across the enterprise to improve efficiency and optimize our cost structure.”
Fortune Magazine in its report quoted a mechanical engineer who described the event saying it was a “mass firing of everybody that was on the call” and suggested that the layoffs might be part of a strategy to shift jobs to “low-cost countries,” citing Stellantis’ outsourcing activities in India, Mexico, and Brazil.
The company intends to invest over $50 billion through the end of the decade to electrify its lineup, despite recent challenges such as a slowdown in electric vehicle sales growth and increasing demand for hybrids. Stellantis aims to introduce eight new electric vehicle models in the U.S. by the end of this year, with plans for more than two dozen by 2030.
