Stellantis to offer buyouts to U.S. employees after reporting drop in net profits

(FOX 2) - Stellantis is offering buyouts to employees working in the U.S. as it works to cut costs. 

In a statement sent to FOX 2, the automaker said it was offering voluntary separation packages to workers "in certain functions" within the company, with more information expected to be sent to eligible employees later in August.

"As Stellantis continues to address inflationary pressures and, importantly, provide consumers with affordable vehicles at the highest quality, we remain focused on taking the necessary actions to reduce our costs to protect the long term sustainability of the company," the statement read.

In its latest earnings report, the carmaker reported its profits were down nearly 50% in the first six months of 2024, the Associated Press reported last week.

The CEO told media that Stellantis' performance had fallen "short of our expectations," focusing blame on the challenges the industry faces as it pivots toward hybrids and electric vehicles. However, Carlos Tavares said he hoped the company's 20 new vehicles expected to launch this year would help boost profits.

He added "significant work" was needed in the company's North America sector, where the losses primarily took place.