Stellantis has decided to reverse its earlier plan to lay off approximately 1,100 workers at its Ohio Jeep plant, just weeks after the sudden resignation of CEO Carlos Tavares. The company announced late Saturday that no employees would be placed on indefinite layoff starting January 5, following a previously disclosed reduction in shift schedules. Instead, Stellantis will extend a worker adjustment and retraining notification, according to a company spokesperson.
Employees are expected to return to their roles as scheduled in the new year.
Tavares’ resignation came as a result of targets that some members of the board considered either unrealistic or detrimental, sources told Reuters. His unexpected departure from the leadership of the global automaker, which owns brands like Jeep, Ram, Fiat, and Peugeot, marked a significant shift for the company.
Earlier last month, Stellantis had announced plans to lay off workers at its Toledo South Assembly Plant in Ohio, where the Jeep Gladiator is produced. The move was part of an effort to streamline operations and reduce inventory in North America.
The company has been grappling with declining sales in North America, which has traditionally been a strong source of profits, especially through popular models like Jeep and Ram. Under Tavares, Stellantis focused heavily on cost-cutting measures, which led to some of the workforce reductions.
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In addition to the layoffs in Toledo, Stellantis also stated that 400 workers at a Detroit parts facility would be placed on indefinite layoff. Back in August, it was revealed that the company would lay off up to 2,450 employees at a Michigan facility following the end of production of the Ram 1500 Classic truck.
While Stellantis has reduced its salaried staff through voluntary buyouts, the cuts to its manufacturing workforce, which is represented by the United Auto Workers (UAW) union, have drawn significant political attention. UAW President Shawn Fain has warned of a potential nationwide strike, accusing Stellantis of not fulfilling promises made during negotiations with the union.