Stellantis is laying off about 400 workers at a Michigan-based materials logistics plant that serves the automaker’s Detroit Assembly Complex plants, according to an emailed statement.
The layoffs will take effect as early as January 5, 2025.
Stellantis said it is transferring the Detroit facility to a third-party service provider to “enhance the competitiveness of the operation.”
“As Stellantis navigates a year of transition, the focus is on realigning its U.S. operations to ensure a strong start to 2025,” the automaker wrote in the statement.
Stellantis has struggled with declining sales in North America in the second half of 2024 resulting in production cuts to reduce excess inventories.
The latest job cuts follow the indefinite layoff of about 1,100 United Auto Workers employees at the automaker’s Toledo South Assembly Complex in Ohio announced last week.
As part of the 2023 collective bargaining agreement with the UAW and the Big Three, affected employees will receive one year of supplemental unemployment benefits combined with any eligible state unemployment benefits, equal to 74% of their wages, according to the statement. Employees will also be offered one year of transition assistance and two years of health coverage.
Stellantis has already issued Worker Adjustment and Retraining Notification Act notices to state and local governments and has also notified the UAW.