Asked to work from home, then fired: How Stellantis laid off 400 employees

Stellantis laid off around 400 employees in a video call after asking them to do work from home on a particular day. They will now get a comprehensive separation package and transition assistance

A bizarre incident happened to a Stellantis worker who received a notice from his company saying that it's mandatory to work from home on a particular day. 

More than 400 employees on Thursday got the notice mentioning the company will hold important operational meetings which require “specific attention and participation.”

The Stellantis notice reads, "To ensure everyone can effectively participate, we have decided to implement a mandatory remote work day." The notice indicates to work from home “unless otherwise instructed by your manager.”

Then the employees were then on Friday laid off on a video call. The laid-off workers include salaried non-union employees in technology and engineering in the United States. 

 

The automaker which manufactures top car brands such as Jeep, Ram, Chrysler, and Dodge shared a statement. The statement reads, “As the auto industry continues to face unprecedented uncertainties and heightened competitive pressures around the world, Stellantis continues to make the appropriate structural decisions across the enterprise to improve efficiency and optimize our cost structure.”

A mechanical engineer shared his experience anonymously with WJBK Fox, a TV station in Detroit. He mentioned that there was a mass firing of everyone who was on the call. According to him, the real reason behind the layoffs was to switch jobs to "low-cost countries," he mentioned adding that the company is outsourcing many jobs to countries like India, Mexico, and Brazil.

Speaking on Thursday to the Wall Street Journal, which first reported on the layoffs, the company said that it will offer affected workers a comprehensive separation package and transition assistance. It added that the reduction would help preserve critical skills, which are important to implement its plan for electric vehicle production.

Stellantis is expected to spend around $50 billion by the end of the decade electrifying its lineup. Recently, the company witnessed a slowdown in EV sales growth and a surge in hybrid demands. It plans to offer eight EV models in the U.S. by the end of the year and over two dozen by 2030.