This miscalculation has contributed to Stellantis' financial struggles. While the company turned a profit in the first half of 2024, earnings dropped 48% compared to the same period in 2023. CEO Carlos Tavares has acknowledged the need for "corrective actions" in the North American market, which could explain the decision to cut costs by reducing the workforce. Stellantis finds itself in a bind—it cannot raise prices any further, but it must sell its current lineup of vehicles. As a result, cost-cutting, starting with layoffs, has become the most viable option.