Stellantis to Lay Off Hundreds of Workers in Michigan and Poland Amid Market Shift

Stellantis NV is poised to implement layoffs across its operations in Michigan and Poland, affecting hundreds of employees in both locations.

According to media reports, the automaker plans to terminate 191 workers at its Sterling Heights Assembly Plant (SHAP) in Michigan by the end of the week. This includes 177 supplemental workers, commonly known as temporary employees, and 14 full-time employees with lower seniority.

The SHAP facility, which produces the Ram 1500 pickup, will see the dismissal of its entire supplemental workforce following the conclusion of temporary assignments over the summer. These layoffs are part of a broader reduction strategy across Stellantis’ operations.

Supplemental workers at the Toledo Assembly Complex, responsible for manufacturing the Jeep Wrangler and Gladiator models, are also facing layoffs, although specific numbers have not yet been made public. The company has indicated plans for additional layoffs of full-time employees in other facilities, but no timeline has been established.

Stellantis is reportedly optimizing its manufacturing processes in response to challenging market conditions and a focus on cost efficiency.

In Poland, the company’s facility in Gliwice is set to lay off 500 employees by the end of the month. This move is linked to a transition from a three-shift to a two-shift production system, driven by declining demand and stringent regulations from the European Union aimed at accelerating the transition to electric vehicles.

These layoffs occur despite a reported 15% increase in sales of light commercial vehicles in the EU during the first half of the year. However, sales of electric commercial vehicles have declined by 4.8%, indicating broader market challenges.

The job cuts in Gliwice are part of Stellantis’ ongoing efforts to adapt to changes in the automotive industry, particularly in response to the shift toward electrification and compliance with EU regulations that require the phase-out of combustion engine vehicles by 2035.