Stellantis has announced another layoff plan that will affect approximately 400 unionized workers at a warehouse in eastern Detroit early next year. The measure will affect all United Auto Workers-represented employees at the Freud Street components sequencing facility, near the Detroit Assembly Complex-Jefferson. The group announced that operations will be outsourced to an external supplier.
Stellantis continues layoffs in the United States: the announcement
“During this transition year, Stellantis is focusing on reorganizing operations in the United States to start 2025 with momentum,” said spokesperson Ann Marie Fortunate.
Stellantis thus continues reducing staff and production volumes at several U.S. facilities, with hundreds of layoffs in recent months in the Detroit area. The cuts come in a very difficult year, characterized by sales challenges and operational issues that have led to an accumulation of Chrysler, Dodge, Ram, and Jeep vehicles at dealerships.
Earlier this week, the group announced the elimination of a shift and the layoff of approximately 1,100 workers at the Toledo plant that produces the Jeep Gladiator, a decision motivated by declining pickup truck demand. This reduction also impacted Mobis North America LLC, a key supplier that assembles the Gladiator chassis at the same site: the company had to announce 210 layoffs among assemblers and maintenance technicians, citing a “reduction in orders from the customer” in their communication.
Last spring, Stellantis had already implemented a layoff plan that involved over 200 workers at the Freud Street facility, as part of a broader staff reduction that primarily affected lower pay grades.
The group has notified local and state authorities of the initiation of the WARN (Worker Adjustment and Retraining Notification) procedure for the new Freud Street layoffs. The cuts will begin on January 5, and affected workers will be entitled to supplemental benefits that will guarantee 74% of their previous pay in addition to state unemployment benefits. Health coverage will also be extended for two years.