The merger between Fiat Chrysler Automobiles and PSA Peugeot Citroën was finalized in early 2021, birthing Stellantis. But even before the deal was done, the auto conglomerate shared its good fortune with its employees with the “pay for performance” initiative. Stellantis has since distributed €6 billion (about $6.4B at current exchange rates), with another healthy 2023.
After strong sales last year, Stellantis will be rewarding its workers with a fat check in 2024. Employees are getting a whopping €1.9B ($2B) total. The company doesn’t say how many people will benefit from the profit-sharing deal, but it does mention that around 95 percent of its workforce was included in the “pay for performance” plan last year.
But it’s not all good news. As the company moves toward an electric future, the company will trim thousands of jobs. In November 2023, Stellantis announced voluntary buyout packages for 6,400 salaried employees in the United States. This followed an earlier announcement in April about voluntary exit packages offered to 33,500 US-based employees, including 31,000 hourly workers and 2,500 salaried workers.
A similar situation is unfolding in Europe, where job cuts are a constant concern amid the industry’s shift to EVs. In its three years since the merger, Stellantis has eliminated around 7,000 jobs in Italy alone. This despite the company’s commitment to keeping all 14 brands alive, including Lancia.
The new Ypsilon, unveiled this week, signals the rebirth of the troubled brand and marks a significant milestone as Lancia’s first electric vehicle and one of 18 EVs Stellantis plans to build this year. The company aims to expand its electric offerings further, with a target of having 48 purely electric models in its portfolio by the end of 2024.