Italian-American automaker Stellantis slashed over 400 roles across its US engineering, software, and tech sectors.
The method of layoffs stirred controversy, as per Fortune magazine. Stellantis enforced a compulsory remote work day on Friday, March 22. Subsequently, the company conducted the dismissals remotely.
This approach has drawn attention and criticism, reflecting evolving trends in remote work practices and corporate decision-making.
Stellantis informed employees of crucial operational meetings necessitating focused participation, leading to a mandated remote work day for all to ensure effective involvement. This decision preceded the subsequent layoffs, drawing scrutiny over the timing and method of implementation.
According to the report, white-collar employees joining the remote call were directly informed of their layoffs, as recounted by a mechanical engineer terminated during the call who told Fox News “It was a mass firing of everybody that was on the call.”
This description underscores the abruptness and collective nature of the dismissals, leaving many affected individuals startled and highlighting the impersonal nature of remote layoff procedures.
The company is outsourcing jobs to India, Mexico, and Brazil. “So they continue to push low-cost countries that are more efficient for the company and more profitable,” he added.
The automaker informed the Wall Street Journal that laid-off workers were provided with a comprehensive separation package and transition aid.
In a statement, they said, “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.”
This follows a trend of abrupt layoff notifications. In 2022, Twitter employees found out about their job losses when unable to access work email.
Goldman Sachs similarly faced criticism for using fake meeting invites at its New York office to inform staff of layoffs, sparking controversy over insensitive practices.
