Stellantis Strikes Lay-Off Deals In Italy Amid Industry Shift: Report

Author: Shivani Kumaresan | March 28, 2024 06:39am

Stellantis N.V. (NYSE:STLA), the manufacturer behind Fiat cars, has reportedly finalized new agreements with Italian unions for voluntary layoffs, potentially reducing its workforce by over 3,000 roles.

New deals for more than 1,000 layoffs were reached on Wednesday across Italian facilities such as Melfi, Pomigliano d’Arco, and Termoli, reported Reuters.

These layoffs coincide with industry shifts towards cleaner energy sources. Additional agreements were announced for Stellantis operations in Turin and the engine manufacturing facility in Pratola Serra, contributing to the overall reduction.

The report further added that a deal for the Cassino plant is pending, with proposed layoffs of 850 roles, subject to negotiation. An agreement is also anticipated for the Atessa van manufacturing plant.

A Stellantis spokesperson confirmed the voluntary nature of the layoffs, primarily targeting employees nearing retirement or seeking new career opportunities, as per the report.

The company employs approximately 43,000 individuals in Italy, with a significant presence in Turin, historically Fiat’s home.

Stellantis has utilized voluntary redundancy packages as its primary strategy for workforce reduction, with its Italian workforce initially totaling around 55,000.

While affirming Italy’s pivotal role in its global operations, Stellantis is in discussions with the government to potentially increase its annual output in the country to one million vehicles.

Price Action: STLA shares are trading lower by 0.83% at $28.75 in premarket on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo by Jonathan Weiss on Shutterstock

Posted In: STLA