Layoffs have been an increasingly common tool used by automakers and many other international companies to cut costs and refocus investments, but Stellantis is having second thoughts about a recently planned layoff at one of its Ohio facilities.
The automaker was slated to lay off around 1,100 employees at the Toledo South Assembly Plant where the Jeep Gladiator is built, which would help it cut down excess dealer inventory and slow production to match sales. Outgoing CEO Carlos Tavares was a driving force behind the company’s brands’ efforts to cut costs, and his departure likely opened the door for other measures that wouldn’t result in post-holiday layoffs.
A spokesperson said, “As Stellantis continues to reassess its strategy in North America, the company has decided to extend the WARN notice that was issued in November for the Toledo South Assembly Plant. As a result, no employees will be placed on indefinite layoff on Jan. 5, 2025, due to the previously announced shift reduction. Employees are expected to return to work as scheduled after the new year.”
The same spokesperson said it’s possible the delay in layoffs becomes permanent. The UAW vice president, Kevin Gotinsky, expressed hope that the workers would remain employed going forward, saying, “Now that Carlos Tavares is out of the picture, I believe things are starting to move in a more positive direction. The company has already partially reversed some previously announced layoffs at Mack, Jefferson North, and Toledo Assembly. With changes to leadership, the company may be reconsidering their plans to offshore UAW jobs.”
[Images: Jeep]
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Source: The Truth About Cars
