Stellantis, the parent company of renowned automotive brands like Chrysler, Jeep, and Dodge, implemented a mandatory remote work day for its employees in the Engineering and Technology organization in the US, under the pretext of essential operational meetings requiring specific attention. Following this remote work day, the company proceeded to lay off approximately 400 employees, representing about 2% of affected units, as reported by CNBC. Amidst struggles with weak sales and growing competitive pressures in the auto market, Stellantis justified these layoffs as essential to improve efficiency and optimize the cost structure across the enterprise in response to ongoing uncertainties.
As the layoffs were announced shortly after the remote work day, some employees viewed this strategic move as a mass firing, causing emotional distress and raising ethical concerns related to transparency, trust, and employee dignity. The controversial practice of using remote work policies for layoffs, described as “a sneaky new tactic” by TheStreet, has sparked debates regarding its ethical implications and the erosion of trust between employers and employees. The use of remote calls for layoffs has even led some workers to record and share their layoff experiences on social media platforms, highlighting the impact and implications of such practices on employee morale and organizational culture.
