Stellantis NV is offering buyouts to salaried employees as a part of an effort to cut costs following a decline in net income during the first half of the year.

The voluntary separation packages are available for non-union represented employees in the United States at the vice president level and below in "certain functions," according to an internal memo obtained by The Detroit News. Unlike previous offers, there are no minimum years of service requirements.

Eligible employees will receive an email on how to access their individualized offers in mid-August with the email stating they will include an "enhanced benefits package that has not been previously available."

The maker of Chrysler, Dodge, Jeep and Ram last week reported earning $6.1 billion, down 48% for the first six months, on net revenues of $92.2 billion, which was off 14% compared to a year earlier. Lower vehicle sales and product mix challenges contributed to the declines with CEO Carlos Tavares stating that the automaker needed to make cuts and that could include putting vehicle brands on the chopping block.

The memo — signed by Tobin Williams, senior vice president for human resources & transformation in North America — said the goal is to meet headcount reductions through attrition and the buyout offer. But he added that involuntary layoffs could be needed if those objectives aren't met through voluntary means.

"As Stellantis continues to address inflationary pressures and, importantly, provide consumers with affordable vehicles at the highest quality, we remain focused on taking the necessary actions to reduce our costs to protect the long term sustainability of the company," according to a Stellantis statement. "One of those actions is offering a voluntary separation package to U.S. employees in certain functions."

The email specified the packages would include months of severance based on years of service as of Sept. 30, 2024. That starts at two months for those with less than four years of experience with the company and tops at 13 months for those with more than 20 years.

Stellantis also will provide a lump sum to help cover health-care costs also based on years with the automaker. There also will be vesting of the 3% 401(k) corporate contributions for employees with less than three years of vesting service. Human resources consultant Lee Hecht Harrison will provide three months of outplacement services, too.

Stellantis routinely has made buyout offers to salaried workers for the past few years, including two rounds last year in the spring and in November. The automaker last year also agreed in a new contract with the United Auto Workers for $50,000 retirement incentive plans for hourly workers in 2024 and 2026.

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