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Following the organizational change in the management of Stellantis Group a few days ago, it is now rumored to start layoffs again.

Today, according to media reports, Stellantis Group announced that it will cut 1100 jobs in Warren, Michigan, due to falling sales. It is understood that the Stellantis Group launched layoffs at the Warren truck assembly plant last week, and some of the more senior employees of the assembly plant will be reassigned to other Stellantis plants. Data show that the assembly plant began operation in 1938, mainly responsible for the production of Ram 1500 Classic as well as Jeep Wagoneer and Grand Wagoneer models, and has produced more than 16 million vehicles. With regard to the follow-up layoffs, a Stellantis spokesman said in a statement that the company "will lay off employees indefinitely in all its plants."

It is worth mentioning that as early as August this year, there were media reports that there was a surge in inventory due to the reduction of Stellantis's market share in the United States, which triggered the dissatisfaction of many dealers. Stellantis decided to stop production of Ram trucks and plans to lay off 2450 workers in Michigan. At that time, officials revealed that layoffs would begin as soon as October 8, and the actual number of layoffs would be reduced if some workers were willing to move to other factories. For those who have been laid off, Stellantis said it will provide 52 weeks of supplementary unemployment benefits and 52 weeks of transitional assistance, and will receive two years of health insurance.

In fact, Stellantis has launched several rounds of layoffs in the United States so far this year. At the beginning of the year, a spokesman for Stellantis said that Stellantis would lay off about 2250 workers at its Mirafiori plant in Turin, Italy, due to weak market demand. In March, Stellantis again announced that it would lay off about 400 employees in its engineering, technology and software departments in the United States in an effort to cut costs and improve efficiency. At that time, officials said the layoffs were taken in view of the unprecedented uncertainty facing the auto industry and the pressure of global competition.

In April, Stellantis laid off 199 full-time employees at the Sterling Heights plant. In the same month, it was also reported that Stellantis would cut about 3500 hourly workers in the United States. Last month, news of layoffs came out at Stellantis's Sterling Heights assembly plant on the outskirts of Detroit, with about 200 layoffs.

According to the data: Stellantis Group was founded in 2021 by the merger of Peugeot Citroen (PSA) and Fiat Chrysler (FCA). Stellantis Group has many brands such as Fiat, Maserati, Jeep, Dodge, Ram, Peugeot, Citroen, Opel and DS. Although there are many brands in Stellantis Group, the performance of Stellantis Group is not satisfactory in recent years with the intensification of market competition and the slowdown of demand. Figures show that in the first half of this year, Stellantis Group's adjusted operating income was 8.463 billion euros, down 40 per cent from a year earlier. Net profit was 5.65 billion euros, down 48 per cent from a year earlier.

As for the decline in performance, officials said it was mainly due to the implementation of inventory reduction measures by the group, the transition period of many products, and the decline in major market shares in North America and other factors. As for the follow-up development, Tang Weishi, CEO of Stellantis Group, has revealed that the follow-up Stellantis Group will take drastic cost-cutting measures and is expected to save 500 million euros in the second half of this year. In addition, in order to improve the performance of North America, Europe and Maserati, officials have revealed that 20 new models will be launched this year. The emergence of these new models will create opportunities to improve performance in the second half of 2024 and the whole of 2025.

Of course, in the face of the decline in sales and profits of Stellantis Group this year, officials have also made a lot of corresponding adjustments. For example, with regard to the relevant high-level personnel changes, Stellantis Group officially announced on August 14th that Pan Liyin would serve as General Manager of Stellantis (Shanghai) Automobile Co., Ltd. And acting General Manager of Alfa Romeo China, while Zeng Dihao would serve as Deputy General Manager of Stellantis (Shanghai) Automobile Co., Ltd. And General Manager of Jeep China. On October 11th, the Stellantis Group announced that CEO Tang Weishi would step down in early 2026, along with a series of senior job changes.

At present, with the rapid development of new energy vehicles, Stellantis layoffs are also a microcosm of changes in the automotive industry. At present, many car companies and parts suppliers are facing a slowdown in market demand and a decline in both sales and profits. in order to survive, reducing costs and increasing efficiency has become a basic measure they have to take. After all, the cost-cutting effect of layoffs is immediate. However, if you want to survive in the fierce competition, you have to rely on the strength of the product in the end.

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