Stellantis has announced it will reverse plans to lay off approximately 1,100 workers at its Ohio Jeep plant, just weeks after the sudden resignation of Chief Executive Officer Carlos Tavares. The move follows a shift reduction previously scheduled for early January, which would have resulted in the indefinite layoff of the workers.
In a statement released late on Saturday, a company spokesperson confirmed that instead of the layoffs, Stellantis will extend a worker adjustment and retraining notification, ensuring employees are not left without jobs in the new year. Workers are expected to return to their roles as per the regular schedule following the holiday period.
What all happened?
Tavares, who had led the Franco-Italian automaker, stepped down amid increasing pressure from the board over what some members perceived as unrealistic targets and a strategy deemed potentially harmful to the company’s future. His departure raised eyebrows given his track record of cost-cutting measures, which had been central to Stellantis’ operations during his tenure.
The decision to reverse the layoffs comes after the company announced a shift reduction at its Toledo South Assembly Plant, which manufactures the Jeep Gladiator. The reduction was part of a broader plan to enhance operational efficiency and address mounting inventory concerns in North America, where Stellantis has seen a dip in sales, particularly in its popular Jeep and Ram vehicle lines.
Despite this setback, Stellantis has also faced a series of job cuts in North America, including at a Detroit automotive parts facility where 400 workers were told they would lose their jobs indefinitely. Earlier this year, the company announced plans to lay off up to 2,450 factory workers at a Michigan plant due to the cessation of production of the Ram 1500 Classic truck.
The company’s focus on cost reduction has become more pronounced, but the impact of these cuts has not gone unnoticed, particularly by the United Auto Workers (UAW) union. UAW President Shawn Fain has publicly criticised Stellantis, accusing the company of failing to honour commitments made to the union. Fain has even threatened a nationwide strike, although Stellantis maintains it is adhering to the terms of its contracts.
(With inputs from Reuters)
