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Asked to work from home, then fired: How Stellantis laid off 400 employees.
A bizarre incident happened to a Stellantis worker who received a notice from his company saying that it's mandatory to work from home on a particular day.
More than 400 employees on Thursday got the notice mentioning the company will hold important operational meetings which require “specific attention and participation.”
The Stellantis notice reads, "To ensure everyone can effectively participate, we have decided to implement a mandatory remote work day." The notice indicates to work from home “unless otherwise instructed by your manager.”
Then the employees were then on Friday laid off on a video call. The laid-off workers include salaried non-union employees in technology and engineering in the United States.
The automaker which manufactures top car brands such as Jeep, Ram, Chrysler, and Dodge shared a statement. The statement reads, “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.”
A mechanical engineer shared his experience anonymously with WJBK Fox, a TV station in Detroit. He mentioned that there was a mass firing of everyone who was on the call. According to him, the real reason behind the layoffs was to switch jobs to "low-cost countries," he mentioned adding that the company is outsourcing many jobs to countries like India, Mexico, and Brazil.
Speaking on Thursday to the Wall Street Journal, which first reported on the layoffs, the company said that it will offer affected workers a comprehensive separation package and transition assistance. It added that the reduction would help preserve critical skills, which are important to implement its plan for electric vehicle production.
Stellantis is expected to spend around $50 billion by the end of the decade electrifying its lineup. Recently, the company witnessed a slowdown in EV sales growth and a surge in hybrid demands. It plans to offer eight EV models in the U.S. by the end of the year and over two dozen by 2030.
Your thoughts on the termination. Was the termination justified, why or why not? If the employee sued the company, do you agree with the reason for the lawsuit and the outcome, why or why not? Does the company sound like a company where you would want to work and why or why not?
The termination of the 400 employees does not seem justified, especially given the fact that they were asked to work from home just before being laid off. The manner in which they were terminated, via video call, also seems insensitive and lacking in empathy.
If an employee were to sue the company for this type of termination, it would likely be justified. The sudden layoff after being asked to work from home seems unfair and potentially discriminatory. The company's decision to outsource jobs to low-cost countries instead of trying to retain existing employees also raises questions about their priorities and treatment of workers.
Overall, this incident does not paint Stellantis in a positive light as an employer. The decision to prioritize cost-cutting and outsourcing over retaining and supporting their employees does not bode well for their reputation as a company that values their staff. I would be hesitant to work for a company that handles layoffs in such a callous manner and prioritizes cost-cutting over employee well-being.