Stellantis, a Netherlands-based carmaker, has recently made plans to reduce its workforce at U.S. plants, resulting in the elimination of 549 temporary, part-time positions. The affected employees were notified last week, and these job cuts are expected to commence in February.
Temporary workers are typically brought in to cover unexpected absences or to support the workforce during periods of increased demand, such as new-model launches. However, Stellantis has deemed it necessary to streamline their operations to enhance efficiency, productivity, and market competitiveness as part of their Dare Forward 2030 strategic plan.
In addition to the U.S. layoffs, Stellantis will also impose temporary layoffs on approximately 2,250 employees at its Turin plant in Italy. These temporary layoffs are scheduled to take place from February 12 until March 3. While the unions in Italy attribute this decision to reduced demand for electric Fiat 500 and Maserati models, Stellantis has not officially confirmed this claim.
Last December, the carmaker revealed its intention to potentially eliminate thousands of jobs at plants located in Michigan and Ohio starting from February 5. This decision was prompted by various setbacks, including sales declines resulting from California emissions limits. Last year, the company suffered a loss of 3 billion euros ($3.26 billion) in revenue due to strikes in the U.S.
These recent job cuts were first reported by The Detroit News.