Stellantis to lay off hundreds of workers in Michigan and Poland amid market shift

Investing.com -- Stellantis (NYSE:STLA ) NV (EPA:STLAM ) is set to layoffs across its operations in Michigan and Poland, impacting hundreds of workers in both regions. 

As per media reports, the automaker plans to terminate 191 employees at its Sterling Heights Assembly Plant (SHAP) in Michigan by the weekend.

This includes 177 supplemental workers, also known as temporary employees, and 14 full-time employees with lower seniority. 

The SHAP facility, which manufactures the Ram 1500 pickup, will see its entire supplemental workforce dismissed. These cuts follow the conclusion of temporary assignments during the summer.

The layoffs at SHAP come amid broader workforce reductions across Stellantis' operations.

Supplemental workers at the Toledo Assembly Complex, where the Jeep Wrangler and Gladiator models are produced, are also facing termination, though specific numbers have not yet been disclosed. 

Additionally, the company has announced plans for further layoffs of full-time employees at other facilities, though no timeline has been provided.

The automaker is said to be optimizing its manufacturing processes in response to challenging market conditions and a focus on cost efficiency.

Meanwhile, Stellantis' plant in Gliwice, Poland, will see 500 employees laid off by the end of the month.

These reductions coincide with a shift from a three-shift to a two-shift production system due to declining demand and stringent European Union regulations pushing for the transition to electric vehicles. 

The layoffs come despite a reported 15% increase in sales of light commercial vehicles across the EU in the first half of the year.

However, sales of electric commercial vehicles have fallen by 4.8%, reflecting broader market challenges.

The layoffs in Gliwice are part of a broader effort by Stellantis to adapt its operations to the evolving automotive market, driven by the shift toward electrification and compliance with EU regulations that mandate the phase-out of combustion engine vehicles by 2035. 

Source: Investing.com