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Stellantis (STLA) plans to lay off as many as 2,450 workers later this year as it ends production of an older model of the Ram 1500 pickup truck.
The Ram 1500 Classic is currently made at the automaker’s factory in Warren, Michigan, alongside the Jeep Wagoneer and Grand Wagoneer. Stellantis has used the truck as a low-cost option to win over fleet buyers and customers looking to buy a pickup without breaking the bank.
But, now that the automaker has updated the Ram 1500 for the 2025 model year, it plans to ditch the Classic. The 2025 Ram 1500 Tradesman will be made at a different plant, which is not affected by the company’s plans in Warren.
“As a result, Stellantis announced today that the plant will move from a two-shift to a one-shift operating pattern in General Assembly,” the company said in a statement. “Other operations within the plant will remain on two shifts to support Jeep® Wagoneer production.”
As many as 2,450 workers will be indefinitely laid off due to the planned changes, with layoffs expected to begin as soon as early October. Around 3,900 people currently work at the Warren Truck Assembly Plant.
It’s just the latest round of layoffs to affect Stellantis’s operations around the world, including in Michigan. In July, Stellantis temporarily laid off some 1,600 workers after it cut production from two to one daily shift for the month, The Detroit News reported. Those cuts were tied to sales of Jeep’s Wagoneer and Grand Wagoneer, which fell by 24% and 17%, respectively, for the second quarter.
Stellantis last month began offering buyouts to its salaried workforce in the U.S., with employees from the vice presidential level down eligible, Automotive News reported. The company employs around 11,000 salaried workers in the country.