Another block tumbles—Stellantis prepares for layoffs. With the US auto industry tariffs in 2025, all major automakers have been hit by new challenges that are risking the stability of their business. After General Motors recently announced layoffs, Stellantis is also headed in the same direction with over 900 US hourly employees expected to be cut.
Stellantis has paused production at some of its auto assembly plants in Canada and Mexico, which has caused a chain reaction where US employees who made powertrains and stampings to supply these plants will now lose their jobs.
Stellantis’ plant closures have been referred to as a temporary change, but with the tariff in place, the layoffs at the auto plants could turn permanent over time if the company is unable to resume production. The US auto layoffs news has prompted criticism from union power-player UAW and could result in stronger resistance from workers if the cuts increase in scale.
The Stellantis layoffs and plant closures suggest a larger trend of cuts may be coming.
Stellantis Layoffs Announced: Temporary Closures Could Turn Permanent
Let’s break down what we know about the Stellantis plant closures. The company has “paused production” at some of its assembly plants in Canada and Mexico in order to fully process the impact of the auto tariffs and evaluate how they will affect the business in the months to come. Due to plant closures, Stellantis workers in the US plants that provide parts to these factories are out of work, as they are not currently required to keep the production up.
Stellantis Factory Cuts—Where Will the Layoffs Occur?
The Stellantis plant closures in Canada and Mexico are scheduled for a temporary period. The first will occur in Windsor, Ontario, which is where the Chrysler Pacifica and Voyager minivans and the Dodge Charger Daytona were produced. This center will be closed for two weeks, and around 4,500 hourly workers will be affected.
The Toluca Assembly in Mexico, where the Jeep Compass and Jeep Wagoneer S are produced, will be closed for the entirety of April, affecting 2,400 hourly workers.
As for the US, according to CNN, around 900 US hourly employees in the Midwest will be affected by the Stellantis layoffs—Warren Stamping and Sterling Stamping plants in Michigan, as well as the Indiana Transmission Plant, Kokomo Transmission Plant, and Kokomo Casting Plant, all in Kokomo, Indiana.
How Will Stellantis’ Temporary Layoffs Affect Workers?
As the company continues to assess the “the medium- and long-term effects of these tariffs on [its] operations,” workers affected by the temporary Stellantis layoffs will still be protected to a degree by their union contracts. Thanks to existing agreements, workers can expect to get paid in the upcoming weeks. However, if the auto plant shutdowns in the USA become more permanent, these workers could lose their pay and their jobs.
“These are actions that we do not take lightly, but they are necessary given the current market dynamics. We understand that the current environment creates uncertainty. Be assured that we are very engaged with all of our key stakeholders, including top government leaders, unions, suppliers, and dealers in the US, Canada, and Mexico, as we work to manage and adapt to these changes.”
—Antonio Filosa, Stellantis’ COO for the Americas
The current factory cuts at Stellantis are meant to give the company an opportunity to reassess its goals and their viability until it can clear the way forward or renegotiate some new deals to ease its troubles.
There is evidence that a majority of US automakers will be heavily affected by the tariffs. Research firm GlobalData found that almost half the cars sold in the US in 2024 were imported from outside. Stellantis also produces and brings in almost half of its finished vehicles from outside the country, so times are tough for the business.
What Do the Unions Have to Say About the US Auto Layoff News?
Despite the administration’s promises that the US auto tariffs would only create short-term pain for American workers, there is growing evidence that there are going to be some prolonged, long-term pressures on employers and employees alike. United Auto Workers union President Shawn Fain criticized the move by Stellantis, calling it an unnecessary choice by the company.
Interestingly, the UAW had spoken out in support of the tariffs earlier, hoping that it would be the catalyst to bring back jobs to the US and spell the renaissance of US union plants. The administration has been referred to as anti-union, and this is evident in the decision to cut the collective bargaining rights of multiple federal agencies that are currently allowed the liberty.
Will Unions Retaliate Against Permanent Layoffs?
In a statement, UAW President Shawn Fain explained that Stellanits has “got the money, the capacity, the product, and the workforce to employ thousands more UAW members in Michigan, Indiana, and beyond. These layoffs are a completely unnecessary choice that the company is making.”
For now, the UAW appears to be on the side of the auto industry tariffs in 2025 but sees the automakers as the decision makers who determine where to cut costs. The employers have been presented as the real enemy. If the Stellantis layoffs increase in scale, the union may push back against Stellantis and other major automakers for halting production or cutting down on the workforce as their primary solution to the tariffs.
Canadian union Unifor, which represents the 4,500 Stellantis workers at the Windsor Assembly Plant, criticised the decision to close production as an impulsive move that came even before the tariffs went into effect. “Our members are concerned for their jobs and frustrated by the uncertainty that these unjust and needless tariffs are creating across the industry,” Local 444 President James Stewart said in a statement on the union website. “We are prepared to fight for our jobs with the full backing of Unifor members across the country.”
The 25% auto tariff-induced layoffs at major auto plants are expected to grow in the coming months, and it appears that unions are gearing up to stand up and voice their frustrations against them. We will have to wait to see how this impacts major automakers and their business operations.
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