Stellantis is laying off roughly 400 workers at a Michigan-based material logistics facility that services the automaker’s Detroit Assembly Complex plants, according to an emailed statement to sister publication Automotive Dive.  

The layoffs will be effective as early as Jan. 5, 2025. 

Stellantis said it was transitioning the Detroit facility to a third-party service provider to “improve the competitiveness of the operation.”

“As Stellantis navigates a transitional year, the focus is on realigning its U.S. operations to ensure a strong start to 2025,” the automaker wrote in the statement.

Stellantis has struggled with declining North American sales in the second half of 2024 resulting in production cuts to reduce excess inventory.

The latest job cuts follows the indefinite layoff of around 1,100 United Auto Workers employees at the automaker’s Toledo South Assembly Complex in Ohio announced last week.

As part of the 2023 collective bargaining agreement with the UAW and big three, impacted employees will receive one year of supplemental unemployment benefits combined with any eligible state unemployment benefits, equaling 74% of their pay, according to the statement. Employees will also be offered one year of transition assistance and health care coverage for two years.

Stellantis has already issued Worker Adjustment and Retraining Notification Act notices to state and local governments, and has also notified the UAW.