Stellantis, the automaker behind the Jeep and Chrysler brands, cut around 400 corporate employees last week after making them work from home.
The company had sent a memo informing all salaried nonbargaining workers that they had to work from home on March 22.
“All U.S. Eng & Tech NBU employees are expected to work from home unless otherwise instructed by your manager,” the memo, which was leaked on X, read. “Please make the necessary arrangements you have the tools and resources needed to work remotely.”
Stellantis then informed the 400 they were being laid off.
According to Stellantis, the cuts were made to keep up with economic headwinds.
“As the auto industry continues to face unprecedented uncertainties and heightened competition pressures around the world,” the company said in a statement, “Stellantis continues to make the appropriate structural decisions across the enterprise to improve efficiency and optimize our cost structure.”
The layoffs come as Stellantis deals with increased competition in the electric vehicle market and the economic fallout of its contract with the United Auto Workers.
The company announced this week it wants at least 40% of its business to involve hybrids or EVs by the end of the decade and will spend $35 billion to get there.
During that time, the company will pay out millions of dollars to its unionized workforce represented by the UAW. Last October, the company signed massive five-year contracts with the union that provided over 20% raises and better benefits.
Soon after signing the agreement, Stellantis offered thousands of its workers buyouts. Over 6,000 employees took the voluntary severance packages in November.
• Vaughn Cockayne can be reached at vcockayne@washingtontimes.com.
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