Stellantis Terminates 400 Employees During Compulsory WFH Day

Stellantis, the Italian-American automaker, is facing criticism after announcing the termination of more than 400 employees across its engineering, software, and technology divisions in the United States.

The company's decision to lay off employees during a mandatory work-from-home (WFH) day on March 22 has raised eyebrows and drawn scrutiny. Employees were reportedly instructed to join a remote call, during which they were informed about their abrupt dismissal.

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Stellantis defended its actions by citing rigorous organizational reviews as the basis for the terminations, asserting that only 2% of employees in these divisions would be impacted. However, the exact number of affected employees has not been disclosed officially.

Despite this, a source close to the company's management revealed that around 400 workers were indeed let go of their roles. An anonymous employee affected by the layoffs told FOX News that it was a mass firing of everyone present during the call. Concerns were raised about the company's strategy to shift positions to countries with lower labor costs, such as India, Mexico, and Brazil, with employees viewing it as a move to enhance productivity and profits.

In response to the backlash, Stellantis released a statement explaining that these actions were necessary to align resources and protect the company's competitive edge amid evolving industry challenges and global competition. The company also mentioned providing affected workers with a separation package and transition support.

This incident is reminiscent of previous controversies in corporate layoffs, such as Goldman Sachs' handling of layoffs last year, where employees were blindsided during morning meetings, and Elon Musk's restructuring of Twitter, which resulted in abrupt terminations for some employees.