Stellantis has declared that it will not proceed with plans to lay off approximately 1,100 employees at its Ohio Jeep plant. This decision comes less than three weeks after Carlos Tavares, Stellantis’ CEO, abruptly resigned. The Franco-Italian automaker released a statement late Saturday, December 21, 2024, confirming the turnaround.
Instead of initiating indefinite layoffs on January 5, Stellantis will prolong the Worker Adjustment and Retraining Notification (WARN) notice. Employees are expected to return to work as planned after the New Year, according to a corporate representative.
The decision follows Tavares’ abrupt resignation, which was reportedly caused by conflicts with board members over expectations that some felt unrealistic or damaging. Tavares has been in charge of Stellantis, the world’s fourth-largest manufacturer, which owns brands like Jeep, Ram, Fiat, and Peugeot.
Last month, Stellantis announced layoffs at the Toledo South Assembly Plant, which produces the Jeep Gladiator, citing the need to enhance efficiency and inventory management in North America. The company’s emphasis on cost-cutting and efficiency has increased in response to declining sales in the region, which has historically been a profitable market because to the popular Jeep and Ram models.
Stellantis has recently reduced its employment. It laid off 400 workers at a Detroit components facility in December and announced up to 2,450 job losses at a Michigan plant in August, effectively ending manufacture of the Ram 1500 Classic pickup.
While most salaried staff reductions have been accomplished through voluntary buyouts, job losses among unionised manufacturing personnel have sparked major political interest. Shawn Fain, president of the United Auto Workers (UAW), has chastised Stellantis for failing to follow union pledges and threatened a statewide walkout.
Stellantis says that it is following the terms of its union contract.
