Stellantis laying off 400 workers at Detroit logistics facility
(CBS DETROIT) - Stellantis will indefinitely lay off 400 workers at its Freud Street material logistics facility in Detroit, the automaker confirmed Friday.
Stellantis, which owns brands like Chrysler, Dodge, Fiat, Jeep and Ram, says the job cuts will be effective as early as Jan. 5, 2025.
According to the company, its Freud Street facility serves both Detroit Assembly Complex plants.
"As Stellantis navigates a transitional year, the focus is on realigning its U.S. operations to ensure a strong start to 2025," the company said in a statement. "To improve the competitiveness of the operation, the Company will transition the Freud Street sequencing facility to a third-party service provider, which will result in indefinite layoffs of approximately 400 represented employees."
Stellantis said in accordance with its 2023 contract with the United Auto Workers, it will provide impacted employees with one year of supplemental unemployment benefits in combination with state unemployment benefits, which equals 74% of their pay, and a year of transition assistance. The company is also providing health-care coverage for two years.
Earlier this week, the automaker announced that it was indefinitely laying off 1,100 union-backed workers at its Toledo South Assembly Plant, where it will move from a two-shift to a one-shift operating pattern. The plant produces the Jeep Gladiator.
The layoffs come after Stellantis reported a 27% plunge in third-quarter revenue, as its shipments dropped by 20% to 1.2 million vehicles during the quarter compared to 1.5 million a year earlier.
At the Paris Motor Show in October, Stellantis CEO Carlos Tavares said the troubled company was on pace to fix sales problems after its poor performance.
CBS News Detroit has reached out to the UAW for comment. We are waiting to hear back.