Layoffs are always a difficult topic, but how they’re handled can make a world of difference. Recently, a large company made headlines for the wrong reasons by choosing a method that many saw as impersonal and cold. Over 400 employees learned they were losing their jobs—not in a face-to-face meeting, but through a remote video call.
A Strategic Move or a Lack of Humanity?
On March 23, 400 U.S.-based office workers from Stellantis, the parent company of major brands like Jeep, Dodge, and Citroën, received a message instructing them to work remotely the following day for “important operational meetings.” The employees, who worked in technology, software, and engineering roles, logged into the virtual meeting on March 24 only to be informed that they were being laid off.
The decision to deliver such life-altering news via video call sparked outrage among employees and observers alike. Many described the method as detached, lacking the respect and empathy employees deserve in difficult moments. One former employee called the experience a “massacre,” accusing the company of prioritizing profits over people.
The Justification: Economic Challenges and Cost Efficiency
In defense of its actions, Stellantis cited the “unprecedented uncertainties” and heightened competition within the automotive industry. The company stated that the layoffs were part of a broader plan to “enhance efficiency and optimize cost structures.” This explanation aligns with CEO Carlos Tavares’s reputation for aggressive cost-cutting measures. Known for his strict management style, Tavares has made similar decisions in the past, including workforce reductions in Europe.
While economic pressures are a reality for many industries, critics argue that there are more compassionate ways to manage layoffs. Delivering such news in person or with direct, human contact would have demonstrated a degree of respect often absent in situations like these.
A Growing Trend of Controversial Layoff Practices
Unfortunately, Stellantis is not alone in adopting controversial approaches to downsizing. In 2023, Goldman Sachs summoned employees to early morning meetings to inform them of their terminations, while others discovered their fate indirectly—such as when Twitter employees found themselves locked out of their work accounts with no prior warning.
These incidents highlight a worrying trend: as technology enables remote work, it is also being used to deliver impersonal news that deeply impacts employees’ lives.
The Broader Impact on Morale and Brand Image
Handling layoffs poorly doesn’t just hurt those directly affected; it can also harm a company’s long-term reputation. For Stellantis, this incident risks alienating both its workforce and customers. In an era where corporate social responsibility is becoming increasingly important, such actions raise ethical questions about how companies balance profitability with human dignity.
Toward More Compassionate Practices
The backlash against Stellantis serves as a reminder that layoffs, while sometimes unavoidable, can and should be handled with care. Companies must recognize the emotional toll these decisions have on their employees and strive to communicate them in a way that reflects respect and empathy.
Layoffs delivered via a video call may seem efficient, but they come at a significant cost: the erosion of trust and morale. Moving forward, organizations must prioritize more humane practices to preserve not just their reputations, but also their relationship with the people who contribute to their success.