Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

New Stellantis layoffs mean over 3,000 jobs set to go in Italy

Published 03/27/2024, 01:24 PM
Updated 03/27/2024, 01:27 PM
© Reuters. FILE PHOTO: The logo of Stellantis, the world's fourth-largest automaker which starts trading in Milan and Paris after Fiat Chrysler and Peugeot maker PSA finalised their merger, is seen next to a car displayed at the main entrance of FCA Mirafiori plant

MILAN (Reuters) - Stellantis (NYSE:STLA), the maker of Fiat cars, on Wednesday signed further deals with unions in Italy for voluntary lay-offs, meaning the automaker could cut its workforce by a total of over 3,000 roles in the country.

New deals were reached on Wednesday for over 1,000 lay-offs at facilities in Italy, including Melfi, Pomigliano d'Arco and Termoli, both for line workers and other functions, the FIOM union said in a statement, although it has not itself signed the agreements.

The cuts are being driven in part by the transition to cleaner energy in the industry.

They add to similar deals announced on Tuesday for Stellantis operations in the city of Turin, with as many as over 1,500 voluntary layoffs, and for the engine making facility in Pratola Serra, with 100 additional jobs involved.

A deal has not yet been signed for the Cassino plant, another large Stellantis assembly facility in Italy.

The company has proposed 850 voluntary redundancies for that site, FIOM had said on Tuesday, but a final deal with unions is expected to settle on a lower figure. Another agreement is expected to cover the Atessa van making plant in central Italy.

A spokesman for Stellantis confirmed the new deals signed on Wednesday, under a framework agreed with unions last week.

"They are part of the initiatives implemented by Stellantis to address the effects of the ongoing energy and technology transition process ... including on employment," the spokesman said.

They are on a strictly voluntary basis and mostly aimed at employees close to retirement age or willing to take new professional opportunities, the spokesman reiterated.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Stellantis employs about 43,000 people in Italy, including about 15,000 in the area of Turin, in Italy's north-west, the historic home of Fiat, which merged with Peugeot-maker PSA to create Stellantis.

Voluntary redundancy packages have been the main tool used by Stellantis to cut its workforce in Italy, which amounted to around 55,000 people when the group was formed in early 2021.

The carmaker, which on Wednesday reiterated Italy had a central role to play in its global operations, is in talks with the Italian government on conditions allowing it to boost its annual output in the country to one million vehicles, from about 750,000 last year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.