Stellantis cuts 400 jobs in Detroit

UAW says it will use every tool in its arsenal to fight back against Stellantis’ latest layoff plan

The bad news for Stellantis’ U.S. employees continues as another round of layoffs is announced. Just days after the automaker disclosed plans to indefinitely lay off 1,139 workers at its Toledo Assembly Plant, Stellantis has now confirmed an additional 400 layoffs at its Floyd Street Materials Logistics facility in Detroit.

The affected employees, represented by the United Auto Workers (UAW), are part of a plant that supplies Stellantis’ Detroit assembly plant. These layoffs, which will take effect as early as January 5, 2025, are a bitter pill for employees in Stellantis’ U.S. operations who are already facing increasing uncertainty.

READ: Stellantis to cut more than 1,100 jobs in Toledo, slash Gladiator production

“Stellantis is undergoing a transition year focused on realigning its U.S. operations to ensure a strong start in 2025,” spokesperson Ann Marie Fortunate said in a statement to the Detroit Free Press. “In order to improve operational competition, Force, the company will hand over the Floyd Street sequencing facility to a third-party service provider, which will result in the indefinite layoff of approximately 400 representative employees.”

The company won’t leave its employees completely out in the cold — at least not right away. Affected employees will receive one year of supplemental unemployment benefits and state unemployment benefits equal to 74% of their current wages, as well as two years of free health insurance.

As you can imagine, the UAW isn’t happy about the latest round of layoffs. The union lashed out at Stellantis, accusing the company of persistent mismanagement and misaligned priorities while vowing to “fight back with every tool in our arsenal”.

“These layoffs are the direct result of short-sighted management decisions at Stellantis, not market conditions,” the UAW added. “Ford and General Motors are not facing these problems. Stellantis has committed more than $8 billion to shareholders this year, yet claims it cannot invest in trusts.” Ledo and Detroit? This is unacceptable. Our members were ready to build Jeeps, but management’s mistakes held them back.”

Stellantis’ woes, meanwhile, extend beyond its workforce. Stellantis announced a series of leadership changes in October amid plummeting stock prices, slowing sales and bulging inventories. CEO Carlos Tavares will retire in 2026, and Jeep CEO Antonio Filosa has now been named chief operating officer for North America. Additionally, long-time COO Natalie King has been replaced by Doug Ostermann, former COO of Stellantis China.

The moves hint at a company trying to stabilize the situation, but whether it can chart a more sustainable course remains to be seen.