DETROIT

Stellantis announced late Saturday that it has cancelled plans to lay off approximately 1,100 employees at its Ohio Jeep manufacturing facility, a decision that comes less than three weeks after the unexpected resignation of Chief Executive Carlos Tavares. The Franco-Italian automaker confirmed that workers at the Toledo South Assembly Plant will return to their posts as scheduled following the new year.

Advertisment

The company, which ranks as the world's fourth-largest automaker, has opted to extend a worker adjustment and retraining notification notice rather than proceed with the indefinite layoffs that were originally scheduled to begin on 5th January. This reversal represents a significant change in direction for the manufacturer of Jeep, Ram, Fiat, and Peugeot vehicles.

Sources close to the matter revealed that Tavares' departure was prompted by disagreements over targets that certain board members considered either unrealistic or potentially damaging to the company. Under Tavares' leadership, Stellantis had placed considerable emphasis on cost-reduction measures across its operations.

The initial layoff announcement at the Toledo facility, which produces the Jeep Gladiator, was part of a broader strategy to enhance operational efficiency and reduce inventory levels throughout the company's North American operations. The region has historically been a significant profit centre for Stellantis, largely due to strong sales of its Jeep and Ram vehicles, though recent sales figures have shown decline.

Advertisment

This is not the first instance of workforce reduction within Stellantis' North American operations. The company had previously announced the indefinite layoff of 400 workers at a Detroit automotive parts facility. Additionally, in August, the company revealed plans to lay off up to 2,450 factory workers at a Michigan facility following the cessation of Ram 1500 Classic truck production.

Whilst Stellantis has implemented workforce reductions among salaried employees through voluntary buyout programmes, it is the manufacturing job cuts affecting United Auto Workers (UAW) union members that have drawn the most significant political attention. UAW President Shawn Fain has issued warnings of potential nationwide industrial action, asserting that Stellantis has failed to honour its commitments to the union. The company maintains that it is operating within the bounds of its contractual obligations.