Stellantis has reversed its decision to implement massive layoffs at its Ohio Jeep plant.
On Saturday, the company announced the withdrawal of plans to lay off approximately 1,100 employees at the Toledo South Assembly Plant, less than three weeks after the sudden resignation of CEO Carlos Tavares.
A company spokesperson stated that the indefinite layoffs, originally scheduled to begin on January 5 due to previously announced shift reductions, have been canceled. Instead, the company will extend worker adjustment and retraining notifications.
The spokesperson also confirmed that employees are expected to return to work as planned after the New Year.
Stellantis has been grappling with declining sales in North America. Under Tavares’s leadership, the company had intensified its focus on cost-cutting measures.
Last month, Stellantis announced plans to lay off workers at the Toledo South Assembly Plant, which produces the Jeep Gladiator. This move is part of an effort to improve efficiency across its North American operations and reduce inventory.
The company also revealed plans to lay off up to 2,450 workers at its Michigan facilities, including 400 employees at the Detroit auto parts facility, and end production of the Ram 1500 Classic truck in August.
While Stellantis has reduced its workforce through a voluntary retirement program, the layoffs of United Auto Workers (UAW), which represent manufacturing employees, have attracted significant political attention.
UAW President Shawn Fain accused Stellantis of failing to honor its commitments to the union and has threatened nationwide strikes in response.
Stellantis, however, maintains that it fully complies with the contract terms.
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