- The job cuts will be effective as early as January 5, 2025.
- Axed employees will receive benefits totaling 74% of their pay for one year.
- The UAW has hit out at the layoffs.
The bad news continues to rain down on Stellantis employees in the United States, as yet another round of layoffs has been announced. Just days after the automaker disclosed plans to indefinitely lay off 1,139 workers at its Toledo Assembly Complex, Stellantis has now confirmed an additional 400 job cuts at its Freud Street material logistics facility in Detroit.
The affected employees, represented by the United Auto Workers (UAW), are part of a facility that supplies Stellantis’ Detroit Assembly Complex plants. These layoffs, set to take effect as early as January 5, 2025, come as a bitter pill to swallow for workers already facing mounting uncertainty across Stellantis’ U.S. operations.
Read: Stellantis To Cut Over 1,100 Jobs In Toledo, Slashing Gladiator Production
“As Stellantis navigates a transitional year, the focus is on realigning its U.S. operations to ensure a strong start to 2025,” spokesperson Ann Marie Fortunate said in a statement to The Detroit Free Press. “To improve the competitiveness of the operation, the Company will transition the Freud Street sequencing facility to a third-party service provider, which will result in indefinite layoffs of approximately 400 represented employees.”
The company isn’t leaving workers entirely out in the cold—at least not immediately. Affected employees will receive one year of supplemental unemployment benefits and state unemployment payments amounting to 74% of their current wages, along with two years of free healthcare coverage.
As you’d imagine, the UAW isn’t happy with the latest round of layoffs. The union has lashed out at Stellantis, accusing the company of a consistent pattern of mismanagement and misplaced priorities, while vowing to “use every tool in our arsenal to fight back.”
“These layoffs are the direct result of short-sighted management decisions at Stellantis, not market conditions,” the UAW added. “Ford and GM aren’t facing these issues. Stellantis has showered its shareholders with over $8 billion this year, yet claims it can’t invest in Toledo and Detroit? It’s unacceptable. Our members are ready to build Jeeps, but management’s missteps are standing in their way.”
Meanwhile, Stellantis’ woes extend beyond its workforce. Amid cratering share prices, slowing sales, and swelling inventories, Stellantis announced a slew of leadership changes in October. Chief executive Carlos Tavares will retire in 2026, and Jeep chief executive Antonio Filosa has now been appointed as North America’s chief operating officer. Additionally, long-standing chief operating officer Natalie King has been replaced by Stellantis China’s former chief operating officer Doug Ostermann.
These moves hint at a company attempting to steady the ship, though whether it can chart a more sustainable course remains to be seen.
