Stellantis has announced a new wave of layoffs in the United States, this time with 400 positions being eliminated at its material logistics center on Freud Street in Detroit. This announcement comes shortly after the announcement concerning the elimination of 1,139 jobs at the Toledo, Ohio factory, where production of the Jeep Gladiator is also affected. These new layoffs will be effective from January 5, 2025, according to Stellantis, a hard blow for employees facing growing uncertainty.
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 benefits and state unemployment compensation, guaranteeing them 74% of their salary for one year, as well as two years of free medical coverage.
Jeep vehicles parked in front of the New York Stock Exchange | Photo: Stellantis
The UAW union strongly opposes
The UAW (United Auto Workers) union, which represents the affected employees, strongly criticizes this decision, accusing Stellantis of “systematic mismanagement and misplaced priorities. » The union also states that “these layoffs are the direct result of short-term management decisions at Stellantis, and not market conditions. »
Repercussions at Stellantis and management changes
Plagued financially, with declining sales and growing inventories, Stellantis recently announced a series of management changes. CEO Carlos Tavares will leave his position in 2026, while Antonio Filosa, current head of Jeep, is now the general manager of Stellantis in North America. In addition, Natalie King, former director of operations, was replaced by Doug Ostermann, former director of Stellantis operations in China.
