Stellantis has told 539 supplemental U.S. manufacturing employees that they’re no longer needed.
The cutback comes several months after the UAW reached new labor agreements with the Detroit 3 that increase pay for temporary workers while giving them an easier path to full-time status. This is the first publicized reduction in temps at any of the automakers since then.
Temps, which Stellantis calls supplemental employees, generally are used to fill in for absences or when a plant needs more workers for a short time.
“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,” the automaker said in a statement Monday. “Following an operational review, the company is reducing the number of supplemental employees across our U.S. footprint, effective immediately. This action will help improve the efficiency, productivity and market competitiveness of our facilities as we implement our Dare Forward 2030 strategic plan.”
The cuts continue a trend at Stellantis, which, in its contract, agreed to make $19 billion in U.S. manufacturing investment through April 2028.
In December, the company said it planned to eliminate production shifts at two assembly plants, potentially laying off 3,500 workers, because it needed to build fewer SUVs to meet stricter emissions standards. The company’s plant in Toledo, Ohio, which builds the Jeep Wrangler and Gladiator, and one of two Jeep Grand Cherokee plants in Detroit were slated to move from three shifts of workers to two, Stellantis said.
The automaker said it planned to start eliminating about 1,200 positions in Toledo in early February, according to a notice posted on a state website. A Stellantis spokesperson told Bloomberg the company has also filed a notice with Michigan warning of as many as 2,455 job cuts at the Detroit plant. However, the totals for both locations are likely to be lower because of the “complexity of our bargaining agreement” with organized labor, the spokesperson said.
On top of those cuts, Stellantis in November said it would offer voluntary buyout packages to 6,400 U.S. salaried employees with at least five years of experience in response to “challenging market conditions.”
The automaker also is looking to shed costs by being more efficient with its marketing spending. It isn’t advertising in next month’s Super Bowl and has pulled out of some auto shows.
Stellantis said it was focusing on “preserving business fundamentals to mitigate the impact of a challenging U.S. automotive market” and “working to optimize its marketing strategy as it relates to auto shows.” It’s evaluating auto shows on a case-by-case basis, the spokesperson said, while prioritizing opportunities for consumers to experience its vehicles firsthand.