Stellantis reverses plan to lay off 1,100 employees in US
22 Dec 2024

Italian automaker Stellantis has reversed its decision to lay off around 1,100 employees at an Ohio-based Jeep plant.

The move comes less than three weeks after the sudden resignation of its Chief Executive Carlos Tavares.

The firm now plans to extend a worker adjustment and retraining notification notice, instead of going ahead with the previously announced layoffs from January 5.

Employees to resume work as planned in 2025
Work resumption

A spokesperson for Stellantis has confirmed that employees are expected to return to work as scheduled after the new year.

The announcement comes after Tavares's exit, which was reportedly due to targets considered unrealistic or harmful by some board members.

Tavares's departure marked a significant change in leadership for the world's fourth-largest automaker, known for brands such as Jeep, Ram, Fiat and Peugeot.

Initial layoff plan aimed at boosting efficiency
Layoff

The initial decision to lay off employees at the Toledo South Assembly Plant, which produces the Jeep Gladiator, was part of Stellantis's plan to improve efficiency and lower inventory across its North American operations.

The move was necessitated as sales in North America have been declining, a region that has historically been profitable for the company, with strong sales of its Jeep and Ram vehicles.

Stellantis's cost-cutting measures
Cost-cutting strategy

Stellantis's emphasis on cost-cutting was further heightened under Tavares's leadership.

The company had earlier announced that 400 workers at a Detroit automotive parts facility would be laid off indefinitely.

In August, it had revealed plans to lay off up to 2,450 factory workers at a Michigan facility due to the end of production of the Ram 1500 Classic truck.