Stellantis to Lay Off 400 Employees at Detroit Logistics Facility Amid Strategic Overhaul

In an announcement that underscores the ongoing shifts within the automotive industry, Stellantis confirmed on Friday that it will be laying off approximately 400 workers at its Freud Street parts logistics facility in Detroit. These layoffs are scheduled to take effect as early as January 5, 2025.

The Detroit News

reported that the company is transitioning the facility’s operations to a third-party service provider as part of a strategic realignment aimed at improving competitiveness and ensuring a robust start to 2025.

Stellantis, which oversees automotive brands including Chrysler, Dodge, Fiat, Jeep, and Ram, has recently felt the pressure amid falling sales and operational hurdles. During a year that the company has described as transitional, Stellantis saw a significant drop in vehicle shipments, contributing to a 27% plunge in third-quarter revenue. The layoffs at Detroit’s logistics center follow several hundred job cuts at various plants in Metro Detroit this year — a response to challenges that include a build-up of vehicles at dealerships, as detailed in a report by

CBS News Detroit

.

The workers affected by the layoffs are set to receive a combination of supplemental unemployment benefits and state unemployment benefits, which equals 74% of their pay. According to the company, employees will also receive two years of healthcare coverage. “As Stellantis navigates a transitional year, the focus is on realigning its U.S. operations to ensure a strong start to 2025,” said a statement by the automaker diluting any hopes that the job cuts might be temporary, per

CBS News Detroit

. The company’s approach to improving operations included issuing a Worker Adjustment and Retraining Notification (WARN) notice to local and state authorities regarding the job cuts.

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