DETROIT – In a strategic move to streamline operations, Stellantis is offering voluntary buyouts to approximately half of its U.S. white-collar workforce. This decision aims to reduce headcount and decrease operational costs within the automaker’s North American sector.

Specifically, the voluntary separation packages will be available to 6,400 of the 12,700 non-bargaining unit employees in the U.S. who have been with the company for five years or more, as announced on Monday. This initiative reflects Stellantis’s commitment to adapting to the evolving automotive landscape.

This move is part of a broader trend among U.S. auto manufacturers striving to manage expenses amidst economic uncertainties and the necessity for substantial investments in emerging technologies, particularly electric vehicles. Competitors such as General Motors and Ford Motor have also implemented similar measures to optimize their workforce and enhance financial stability.

“In light of the ongoing challenges faced by the U.S. automotive industry, Stellantis is proactively making essential structural adjustments to safeguard our operations and the overall health of the Company,” stated Stellantis in an email statement. “As we pivot towards the future dominated by electric vehicles, we are extending this voluntary separation package to support non-represented employees who wish to retire or explore other career opportunities, all while offering a comprehensive benefits package.”

A spokesperson for Stellantis refrained from disclosing the anticipated number of employees or total costs associated with these reductions. Furthermore, there was no comment on the possibility of involuntary layoffs should the buyout offers not attract sufficient participants.

Stellantis North America’s Chief Operating Officer, Mark Stewart, informed employees about the buyout program on Monday, which was initially reported by The Wall Street Journal.

Eligible employees will have until December 8 to accept the buyout offers, according to the company’s announcement.

This marks the second round of salary-based buyouts for Stellantis this year. Previously in April, the company had offered voluntary buyouts to around 33,500 U.S. employees, which included 31,000 hourly workers with at least one year of service and 2,500 salaried, non-union employees who had been with the company for 15 years or more.

The latest buyout offers come shortly after Stellantis reached a tentative agreement with the United Auto Workers (UAW) regarding new labor contracts for its 43,000 unionized employees.

This preliminary agreement, which requires ratification by union members, also includes provisions for voluntary buyouts that enhance employee benefits.

The UAW has indicated that the voluntary retirement incentive will provide $50,000 pretax to an unlimited number of eligible manufacturing and skilled-trade members in 2024, with a similar offer planned for 2026. This initiative demonstrates a significant commitment to employee welfare.

The Stellantis spokesperson clarified that the salaried buyout offers are not directly linked to anticipated increases in U.S. labor costs resulting from the agreement with the UAW, indicating a strategic separation of these actions.

This tentative union agreement proposes a substantial 25% wage increase over the contract period, inclusive of an immediate 11% increase upon ratification, alongside the reinstatement of cost-of-living adjustments, additional contributions for retirees, billions in new investments, and various other benefits designed to enhance employee satisfaction and security.