The world's fourth largest car group Stellantis is saying goodbye to another 400 employees with immediate effect. It happens just a few days after 1,139 colleagues were fired.
Stellantis is now laying off another 400 employees at the group's logistics center on Freud Street in Detroit.
A cut that comes just days after the car group gave a similar announcement that 1,139 employees at the Toledo Assembly plant have been fired.
The United Auto Workers (UAW)-organized workers at the Freud Street facility supply Stellantis' Detroit manufacturing facility, and the workers will have their last day of work Jan. 5, 2025.
A spokeswoman for Stellantis, Ann Marie Fortunate, tells The Detroit Free Press that the layoffs are due to restructuring.
– In order to improve the competitiveness of this part of the company, Stellantis will hand over the operation of the Freud Street sequencing facility to a third party, which will entail the permanent redundancies of approximately 400 employees, she explains.
Stellantis finds itself in an extensive crisis. In the US alone, the group looks at all parts of the business in the hope of being able to enter the new year stronger.
However, the new rounds of layoffs only make it worse for the employees, who both in the US and Europe have to see their colleagues disappear from the shift in one round of layoffs after another.
In fact, the crisis is so deep that several of the group's total of 14 car brands are in danger of closing. Most recently, Boosted could tell that one of them may only have two years left. Read more about it here .
At the same time, Stellantis has stocks full of new cars that have not yet been sold. The huge stocks have a direct impact on the group's share price, which has only gone down for a while.
However, the decline for Stellantis has also had consequences at the very top. From the board of directors, it was announced in October that CEO Carlos Tavares will step down completely in 2026, when his current contract expires.
The latest management changes can be interpreted as an attempt by Stellantis to navigate through the current challenges. But how both a farewell to the top director and several thousand employees will affect the car business, it is still too early to predict.
Read more exciting news from and about the world of cars right here!
