‘Sudden’ loss of business prompts logistics supplier to close its Macomb County facility
A logistics supplier for Stellantis intends to lay off 70 workers in Warren after the automaker’s “sudden and unexpected” termination of its services, according to state officials and published reports.
Workers will be let go from DP World Contract Logistics effective Oct. 5, the company said in a WARN notice. The layoffs will take place at its warehouse near Hoover and Nine Mile roads.
According to the notice, DP World recently received word its sole customer in Warren — Stellantis — that its services will no longer will be needed after Oct. 5.
“DP World will not have any ongoing work at the Warren Facility after October 5th and, thus, no need for employees to work at that facility thereafter,” Lauren Bennett, human resources manager for the company, said in the Aug. 5 letter. “Accordingly, closure of the Warren Facility is expected to be permanent.”
A Stellantis spokesperson said the work is being insourced to Warren Truck Assembly Plant but declined to provide details, Crain’s Detroit Business reported.
The automaker is expected to absorb the work with existing resources instead of making new hires.
Automakers are trying struggling to accommodate new tariffs and regulatory changes, including rolled-back carbon emissions rules initiated by President Donald Trump. The administration believes tariffs will boost U.S. manufacturing, but industry experts are concerned the moves will lead to escalating costs and weaker sales and production.
Hundreds of workers represented by the UAW have been laid off the Detroit area, including at Warren Truck, where the discontinuation of the Ram 1500 Classic forced 1,100 job cuts late in 2024.
Teamsters Local 299, the union which represents those impacted by DP World’s cuts, is hoping to match up workers with employment opportunities for workers, Kevin Moore, president of Local 299, told Crain’s.
“They’re losing work left and right over there,” Moore said. “They’re losing it because of all these changes in auto. A lot of it is because they’re not producing. They’re not ramped up, not at full production.”
According to the WARN letter, DP World’s management will communicate in the coming weeks with its employees and their union representatives regarding progress on the closure and bumping rights and transfers, as applicable.
Copies of the letter were also sent to Warren Mayor Lori Stone and Macomb County Executive Mark Hackel.
The Worker Adjustment and Retraining Notification Act, also known as the WARN Act, requires companies going through mass layoffs or site closures to issue advance public notice to the state’s labor department. DP World said “based on the expected employment loss totals it does not appear any notice under the Federal WARN Act is required.”
The company’s filing did not provide the number of unionized employees and affected job titles were not provided in the company’s filing.
The Dubai, United Arab Emirates-based company has 100,000 employees at over 120 locations, its website says.
Macomb County plastic mold shop to shut down, taking 45 jobs
Trump saying 600,000 Chinese students could come to the US draws MAGA backlash
No coffee for you! Warren officials shoot down mayor’s atrium proposal