Owner of Jeep and Dodge Coldly Lays Off 400 Employees by Completely Locking Them Out of Their Systems and Emails

Some are criticizing this trend of firing employees remotely as “cold” or “impersonal,” in a continuing discussion about how companies should be handling layoffs in the modern digital landscape.

These workers were all salaried workers, of which Stellantis employed a total of 11,800 at the end of 2023. The cuts are set to go into effect on March 31.

“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,” the company said.

This strategic consolidation aimed to harness synergies and scale innovations, positioning Stellantis to better compete in a rapidly evolving automotive market.

Sources confirmed the layoffs took place during a “mandatory remote work day” but could not go on the record because they were not authorized by the company to speak about the decision.

As jobs are cut, local businesses and municipal revenues may face declines, highlighting the interconnected nature of large manufacturers and their local economic ecosystems.

This shift comes as the company seeks greater efficiency and cost-effectiveness under the new UAW agreement.

The current formation of the company was established through a merger between Fiat Chrysler, and the PSA Groupe in 2021. The merger made headlines at the time because it made Stellantis the fourth-largest automaker in the world.

They seek full back-pay and restoration of benefits, reflecting a push against what they view as unfair labor practices and highlighting the ongoing struggle for workers’ rights within the auto industry.

With the company merger, there comes new pressure for Stellantis to cut costs and become more profitable for investors and shareholders. The company said that these cuts come “after rigorous organization reviews.”

Stellantis aims to adapt to the shifting automotive landscape, where sustainability and innovation are increasingly critical.

“While we understand this is difficult news, these actions will better align resources while preserving the critical skills needed to protect our competitive advantage as we remain laser focused on implementing our EV product offensive and our Dare Forward 2030 strategic plan,” the company said.

As companies worldwide adopt similar strategies, the method of delivering such news digitally is scrutinized for its impersonal nature, sparking debates about corporate responsibility and the human aspect of business decisions.

These layoffs reflect the interconnected nature of the automotive supply chain, where adjustments by a major manufacturer can significantly impact its partners, affecting jobs and economic stability in the industry.

As the industry faces technological shifts and economic pressures, the balance between corporate efficiency and worker rights remains a critical challenge, potentially reshaping labor dynamics across the sector.

This backlash is part of a broader discourse on how companies handle layoffs, emphasizing the need for more humane approaches to managing workforce reductions in the digital age.

These challenges compel the company to streamline operations and reduce costs, illustrating how external economic factors can drive tough corporate decisions like layoffs.

Business Insider reported in December that various companies were informing fired employees through a simple email, or were just locking employees out of digital company systems.

“It feels very much like they are just as cutthroat corporate as anybody else,” one employee said.

Employees of Twitter during Musk’s takeover didn’t even receive a formal announcement of their firing at first. They only found out that they had lost their jobs from the fact they could no longer access their company email and laptops. 

This approach has been widely criticized as harsh and dismissive, sparking debates about the ethics of layoff practices in the tech industry.

While digital layoffs may be logistically simpler for large companies, they often lack a personal touch and can damage morale and brand reputation.

“The sheer logistics of 400 people at once is difficult,” he explained. “If you call them in one by one, it takes days — or an army of managers or HR to do it. If you do it in one big meeting, you would have a room full of people who are all upset/angry, and that could turn ugly,” said Ben Hardy, a clinical professor of organizational behavior at London Business School.

“If an employee has had a long-term relationship with the organization and feels that they have been a loyal employee, they are likely to feel that the organization ‘owes’ them more compassion,” said Amanda Jones, a senior lecturer in organizational behavior at King’s College London.

As the automotive industry and corporate world at large navigate these difficult waters, the balance between operational efficiency and ethical employment practices continues to be a critical focus.