Italian-American automaker Stellantis has come under fire for its recent controversial decision to lay off more than 400 employees across its U.S. engineering, software and technology divisions. The company's method of firing employees is highly unusual and has drawn criticism that many consider inappropriate. According to the report, Stellantis instructed employees to attend a mandatory remote work day on March 22, but during a remote call, employees were informed of the unexpected layoffs. The automaker defended its actions, citing strict organizational scrutiny as the reason for the layoffs and claiming that only 2% of employees in these departments would be affected. Despite this explanation, the exact number of employees affected has not been disclosed.
However, a source close to management confirmed that around 400 employees have been let go from their jobs. “It was a mass layoff of everyone who was on the phone,” an anonymous employee who was affected told Fox News. The person said the company offered numerous positions in countries such as India, Mexico and Brazil. The company emphasizes the importance of taking advantage of countries with low labor costs, calling it a strategy to improve productivity and profits.
Meanwhile, Stellantis said in a statement: “These actions allow us to maintain the critical skills needed to protect our competitive advantage as we continue to focus on our EV product offensive and the implementation of our Dare Forward 2030 strategic plan. “However, we can better align our resources.” As the automotive industry continues to face unprecedented uncertainty and increased competitive pressures around the world, Stellantis is making the right structural decisions across the company to improve efficiency and optimize its cost structure. I will continue to do so. ”
The organization also announced that the company would provide severance packages and transition assistance to affected workers, according to the report.
Goldman Sachs faced backlash last year over its handling of layoffs, with about 3,200 employees forced out of their jobs. Employees were invited to morning meetings at the company's New York headquarters, some as early as 7:30 a.m., but upon arrival they learned they had been fired. Similarly, when Elon Musk took over control of Twitter, some employees lost access to the company's email and messaging systems and felt forced out of their jobs. Some found out their fate in emails sent after their shifts.
First published: March 26, 2024, 15:40 IST
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