Stellantis Layoffs in Detroit

By Nora Eckert

DETROIT (Reuters) – Stellantis announced on Friday that 400 workers at a Detroit automotive parts facility will lose their jobs indefinitely as the company focuses on reducing costs in its struggling North American business.

> "As Stellantis (NYSE:STLA) navigates a transitional year, the focus is on realigning its U.S. operations to ensure a strong start to 2025," the company stated.

Earlier this week, Stellantis laid off about 1,100 employees at a Jeep Gladiator plant in Ohio and cut as many as 2,450 unionized jobs at a Michigan facility in August, ending production of the Ram 1500 Classic truck.

Stellantis' emphasis on cost-cutting has intensified under CEO Carlos Tavares, who is working to reverse the company's declining sales and profits in the U.S. Recently, Tavares announced a top management shake-up and revealed he would retire after his contract ends in early 2026. Stellantis' stock is down about 41% this year.

While the company has reduced its salaried workforce through voluntary buyouts, job cuts affecting manufacturing employees represented by the United Auto Workers (UAW) have garnered significant attention from politicians. President-elect Donald Trump warned he would impose a 100% tariff on Stellantis should the automaker relocate U.S. jobs to Mexico.

> "Our members are ready to build Jeeps, but management’s missteps are standing in their way. We are prepared to use every tool in our arsenal to fight back," stated the UAW.

The UAW recently endorsed Vice President Kamala Harris for U.S. president and criticized Trump. UAW President Shawn Fain has threatened a nationwide walkout at Stellantis facilities, claiming the automaker has not upheld promises made with the union last fall. Some local union chapters have even voted to authorize a strike.

Last month, nearly 80 members of Congress called on Stellantis to honor its investment commitments as part of its agreement with the union. Stellantis has claimed it is adhering to contract terms.