Stellantis Cuts 539 Supplemental Employees Amidst Strategic Shift

In a significant development today, Stellantis declared the permanent separation of 539 supplemental employees across its U.S. manufacturing operations. This decision comes as part of the company’s comprehensive evaluation of its operational efficiency.

Affected workers were notified on Friday, and the dismissal is effective immediately. Notably, Stellantis emphasizes that these cuts are not classified as layoffs, rendering the affected workforce ineligible for supplemental unemployment benefits.

“As part of our normal course of business, Stellantis regularly analyzes staffing levels at our manufacturing facilities to ensure they are operating as efficiently as possible,” stated a company spokesperson. “This action will help improve the efficiency, productivity, and market competitiveness of our facilities as we implement our Dare Forward 2030 strategic plan.”

It’s crucial to note that these workforce reductions do not include the recently announced temporary layoffs at the Detroit Assembly Complex – Mack (DACM) facility, impacting 2,453 workers. The DACM plant is known for producing the popular Jeep® Grand Cherokee and Grand Cherokee L.

Additionally, 1,225 employees at the Toledo Assembly Complex are also facing layoffs, affecting the production of the Jeep Wrangler and Gladiator. The actual number of layoffs may be fewer than initially suggested, particularly in Detroit, and these changes are scheduled to take effect on February 5th.

These cuts are part of a series of strategic moves by Stellantis as the company undergoes a transition to electric vehicles (EVs). Despite the increased production costs associated with EVs, they require fewer workers for assembly. The automotive giant has recently inked a new contract with the United Auto Workers (UAW) union, resulting in record contracts for many of its workforce employees.

In addition to the workforce adjustments, Stellantis has made significant cuts in its marketing budget. This includes stepping away from the North American auto show scene and opting out of advertising in the Super Bowl.