Stellantis has announced a new wave of layoffs in the United States, this time cutting 400 jobs at its Freud Street material logistics center in Detroit. This deals a fresh blow to employees who are facing growing uncertainty. The announcement comes shortly after 1,139 job cuts at the Toledo, Ohio plant, where production of the Jeep Gladiator is also affected.
According to Stellantis, the new round of layoffs will be effective as of January 5, 2025,
Financial support and health insurance for affected employees
Although the job cuts are “indefinite,” Stellantis announced that laid-off employees will receive financial support in the form of additional unemployment compensation and state unemployment benefit, guaranteeing them 74 percent of their salary for one year, as well as two years’ free medical coverage.
Jeeps parkes outside the New York Stock Exchange | Photo: Stellantis
UAW union strongly opposed
The United Auto Workers (UAW) union, which represents the affected employees, strongly criticizes the decision, accusing Stellantis of “systematic mismanagement and misplaced priorities.” The union also states that the layoffs are “the direct result of short-term management decisions at Stellantis, not market conditions.”
Repercussions at Stellantis and changes in management
Plagued by financial difficulties, declining sales and rising inventories, Stellantis recently announced a series of management changes. CEO Carlos Tavares will step down in 2026, while Antonio Filosa, current CEO of Jeep, is now Stellantis’ Managing Director in North America. In addition, Natalie King, former Director of Operations, has been replaced by Doug Ostermann, former Director of Operations for Stellantis in China.
