Stellantis is reportedly planning to implement up to 200 voluntary redundancies at its Termoli plant in central Italy.

This decision, agreed upon with trade unions, is part of Stellantis' broader strategy to rejuvenate its workforce in Italy, reported Reuters.

The initiative follows similar announcements for other Italian plants, aiming to reduce the workforce by up to 1,000 employees.

The company's strategy also includes recent hiring initiatives, with around 300 new employees joining in Turin and Atessa in Italy.

Stellantis currently employs fewer than 40,000 staff in Italy, a decline from 55,000 in early 2021, following the merger of Fiat Chrysler and Peugeot maker PSA.

The company said: "Stellantis reaffirms that Italy is at the centre of the group's strategies."

Last December, Stellantis presented a plan to the Italian government to revitalise production in the country, with benefits expected next year.

In March, the Termoli plant began preparations for a production line dedicated to electric dual clutch transmission (eDCT) gearboxes for hybrid vehicles, making it the third Stellantis production hub alongside Mirafiori in Turin and Metz in France.

Termoli is also one of the sites selected by Stellantis-led joint venture ACC for building EV battery plants in Europe.

However, plans for gigafactories in Italy and Germany were put on hold due to sluggish market demand for electric vehicles.

In April, Stellantis announced temporary layoffs of 900 hourly workers across its five US facilities.

This decision was influenced by newly implemented tariffs, which increased the cost of auto imports and disrupted production across North America.

Also, Stellantis has withdrawn its 2025 financial outlook amid tariff concerns, engaging with officials to mitigate trade policy effects.

The firm saw a 14% drop in Q1 net revenues, down to €35.8bn year-over-year.