Stellantis has reversed its decision to lay off approximately 1,100 workers at its Ohio Jeep plant, following the sudden resignation of CEO Carlos Tavares. The company announced late Saturday that no employees would face indefinite layoffs from January 5 due to a previously planned shift reduction. Instead, the automaker will extend worker adjustment and retraining notices, with employees expected to return to work after the New Year, reports Reuters.
According to the report, published on Sunday, the layoffs were initially planned as part of an effort to improve efficiency and reduce inventory in Stellantis’ North American operations, particularly at the Toledo South Assembly Plant, which manufactures the Jeep Gladiator. These changes were part of a broader cost-cutting strategy under Tavares, as the company faced slipping sales in North America.
Tavares’ resignation, which occurred less than three weeks before the reversal of the layoffs, was reportedly linked to disagreements over targets seen as unrealistic by some board members. Stellantis has faced pressure over job cuts, especially among manufacturing employees represented by the United Auto Workers (UAW) union, which has accused the company of not keeping promises. Stellantis maintains it is complying with union contracts and has continued with some voluntary buyouts to reduce its salaried workforce.
Bd-pratidin English/ Jisan
