Automaker Stellantis NV has made the decision to offer voluntary separation packages to its non-union salaried employees in the United States in an attempt to reduce costs following a decline in net income during the first half of this year. The buyout offers, available for eligible employees at the vice president level and below in specific departments, come with an "enhanced benefits package" and no minimum years of service requirements, as outlined in an internal memo obtained by The Detroit News.

In an effort to achieve headcount reductions through attrition and voluntary buyouts, Stellantis aims to protect the long-term sustainability of the company amidst inflationary pressures. Should the voluntary measures fall short, the memo warns of the possibility of involuntary layoffs to meet their cost-cutting objectives.

Eligible employees, who will receive personalized buyout offers via email in mid-August, can expect months of severance pay based on their years of service by September 30, 2024. The severance period starts at two months for those with less than four years of experience and goes up to 13 months for employees with over 20 years of service. Furthermore, a lump sum will be provided to assist with healthcare expenses based on the individual's tenure with the company.

Stellantis has a history of offering buyout packages to its salaried workforce, with previous rounds occurring in the spring and November of last year. As part of cost-saving measures, the automaker also secured a new contract with the United Auto Workers, agreeing to $50,000 retirement incentive plans for hourly workers set for 2024 and 2026.

In addition to the severance and healthcare benefits, Stellantis will arrange for three months of outplacement services through human resources consultant Lee Hecht Harrison for the employees opting for the buyout packages. With these strategic actions, Stellantis remains committed to providing affordable vehicles of the highest quality to consumers while navigating economic challenges in the automotive industry.