Stellantis to Lay Off 400 UAW Workers at Detroit Freud Street Warehouse

In another round of workforce reductions, Stellantis has announced plans to lay off approximately 400 United Auto Workers (UAW) members at its Freud Street parts warehouse in Detroit. The cuts, expected to take effect in early 2025, are part of the automaker’s ongoing efforts to streamline U.S. operations amid declining sales and rising costs.

Stellantis spokesperson Ann Marie Fortunate addressed the move, stating, “As Stellantis navigates a transitional year, the focus is on realigning its U.S. operations to ensure a strong start to 2025.” She noted that these changes reflect the company’s efforts to position itself competitively within a challenging market, emphasizing that the layoff decision was “not taken lightly.”

The layoffs at the Freud Street facility impact all UAW-represented employees there. Stellantis confirmed that the facility’s work would be transferred to a third-party provider starting in January. “This transition will result in job losses,” Fortunate said but added that the move is necessary to streamline operations and meet long-term goals. She expressed appreciation for the workers’ dedication, acknowledging their “tremendous resiliency during recent disruptions.”

To support affected workers, Stellantis is offering supplemental benefits in addition to state unemployment, providing an income replacement of up to “74% of their normal pay.” Fortunate confirmed that healthcare benefits for these employees will also continue for two years after the layoffs.

The Freud Street facility has played a vital role in Stellantis’ supply chain, handling parts sequencing for the nearby Detroit Assembly Complex-Jefferson (DACJ) plant. This complex, known for producing the Jeep® Grand Cherokee and Dodge Durango, relies on a steady flow of parts and components from the Freud Street warehouse to maintain its production lines.

This announcement follows other recent cutbacks by Stellantis, including the layoff of 1,100 workers at the Toledo Assembly Complex—South Plant, which produces the Jeep® Gladiator in Ohio. Fortunate explained that such moves are part of a broader strategy to manage declining demand and stabilize U.S. operations, saying, “The steps we’re taking now are essential for a sustainable future.”

Stellantis has informed local and state authorities through a Worker Adjustment and Retraining Notification (WARN) notice detailing the timing and terms of the Detroit layoffs. As these adjustments unfold, Stellantis CEO Carlos Tavares aims to drive operational efficiency, having recently reshuffled top management and announced his own retirement at the end of his contract in 2026.

In response to recent job cuts and shifts in company operations, nearly 80 members of Congress have urged Stellantis to honor its investment commitments to U.S. workers, particularly those that are part of the company’s agreements with the UAW. Tensions have risen further with President-Elect Donald Trump warning that he would impose a 100% tariff on Stellantis if it attempted to shift U.S. jobs to Mexico. Despite these pressures, Stellantis has stated that it remains “committed to adhering to contract terms” as it continues its realignment efforts.

UAW President Shawn Fain has voiced concern over Stellantis’ actions, indicating that the union may respond with a strike if worker commitments are not honored. The company stands by its operational decisions while positioning itself competitively for the coming year.