Shares of the world’s fourth-largest automaker climbed nearly 3% today after announcing that it would begin laying off staff. The layoffs will start next week as early as June 20 at the Sterling Heights, Michigan stamping plant, which also happens to be the world’s largest stamping plant.
The Sterling Heights Stellantis plant has 2,184 employees, 2,000 of whom are hourly workers. It’s unclear how many workers will be let go during the process, but it is expected to be undertaken from the bottom up. This is according to a letter posted on a Facebook page operated by United Auto Workers Local 1264, a union representing workers at the plant.
Supply issues at Stellantis
Stellantis claimed that the decision was made in order to make the plant operate “in a more sustainable manner”. Going by the remarks by one company spokesperson, it’s possible the move has been prompted by delays in production due to supply chain problems.
In fact, the company stated in April that it didn’t expect any improvement in semiconductor supply until 2024. This already forced Stellantis to stop operations at a Melfi plant in southern Italy for a week. Meanwhile, a union representing employees at a Windsor Assembly Plant in Ontario tweeted that the plant had been down for a week due to a lack of parts.