ALBAWABA - Stellantis has walked back on its intention to lay off around 1,100 workers from its Toledo, Ohio, Jeep manufacturing facility, according to Reuters. The announcement, which was made soon after the resignation of CEO Carlos Tavares, represents a strategic change in the automaker's activities in North America.
Due to a planned cut in shifts at the Toledo South Assembly Plant, Stellantis had initially anticipated indefinite layoffs beginning January 5, 2025. There won't be any layoffs, however, according to a company’s spokesperson, and all workers should return to work as planned after the Christmas season.
As part of larger cost-cutting initiatives to address declining sales, the layoffs were first announced in November. Stellantis planned to relocate 400 employees to a third-party service provider and cut the plant's operations from two shifts to one, according to AFP.
Sales of Stellantis plummeted in the third quarter, falling 42% in North America alone., which prompted marketing initiatives aiming to help dealerships manage inventories.
The interim CEO has changed priorities since Tavares abruptly resigned on December 1, focusing on investment commitments and production continuity, especially with giving pledges to the French and Italian governments on the regards, AFP reports.
Stellantis undertook drastic cost-cutting measures under Tavares; lead, which affected both hourly and paid workers. The company revealed earlier this year that it would be terminating manufacture of the Ram 1500 Classic vehicle, which would result in the layoff of 2,450 employees at a Michigan site. There were also plans for extended layoffs of 400 employees at a components facility in Detroit.
About 258,000 people are employed globally by Stellantis, the fourth-largest carmaker in the world and the parent company of Jeep, Ram, Fiat, and Peugeot.
