In a bid to streamline operations and reduce costs, Stellantis, the parent company of Jeep, Fiat Chrysler, and other automotive brands, has initiated a significant round of layoffs affecting approximately 400 salaried employees in the United States. 

The affected positions primarily pertain to engineering, technology, and software roles within the company's operations in Auburn Hills, Michigan. Employees impacted by the layoffs began receiving notifications on Friday morning, according to AP News. 

Stellantis Lays Off Workers During 'Mandatory Remote Work Day'

The decision, communicated to employees during a 'mandatory remote work day,' reflects the company's ongoing efforts to navigate what it describes as "challenging market conditions." 

Affected employees will receive separation packages and transition assistance as part of the company's commitment to supporting them through this transition. 

Stellantis emphasized that these layoffs are part of a broader strategy aimed at enhancing efficiency and optimizing the organization's cost structure amidst evolving industry dynamics.

"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," stated Stellantis in a prepared statement.

This move is the latest in a series of measures undertaken by Stellantis CEO Carlos Tavares to address financial pressures and realign resources following the merger between Fiat Chrysler and PSA Groupe in 2021. 

The company's strategic plan, 'Dare Forward 2030,' seeks to bolster profitability and double revenue by 2030, necessitating adjustments to its workforce and operations.

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Stellantis Maintains Focus on Electric Vehicle Development

Stellantis reiterated its focus on advancing its electric vehicle (EV) initiatives, a segment perceived as crucial for future growth and competitiveness.

Tavares has stressed the importance of cost reduction to make EVs more accessible to consumers, citing the disparity in manufacturing costs between electric and traditional combustion engine vehicles. 

Despite significant advancements in EV adoption, particularly evident in a record 47% sales growth in the U.S. market last year, Stellantis remains vigilant about cost competitiveness, especially in light of emerging competition from Chinese manufacturers.

Stellantis' decision follows similar workforce reductions by industry peers such as Ford and General Motors, who have also grappled with the transition to electric mobility.

Last week, Former Ford CEO Mark Fields, now a CNBC contributor, warned about future financial challenges for EV startups, signaling a turbulent period ahead due to slower-than-expected market penetration.

READ MORE: EV Startups Face 'Real Financial Trouble' Amid Slow Adoption, Ex-Ford CEO Says