- Stellantis has decided not to lay off 1,100 employees at its Ohio Jeep plant following the resignation of Chief Executive Carlos Tavares.
French-Italian automaker Stellantis said late Saturday it was reversing a decision to lay off about 1,100 employees at its Jeep plant in Ohio, less than three weeks after the sudden resignation of Chief Executive Carlos Tavares. .
A company spokesperson said in an emailed statement that the company has decided not to indefinitely lay off employees due to previously announced work reductions from January 5, but will instead extend the notice period for employee adjustments and retraining.
The spokesperson said employees are expected to return to work as planned after the New Year.
Sources told Reuters that Tavares’ exit comes after Tavares was abruptly removed from the helm of the world’s fourth-largest automaker, whose brands include Jeep, Ram, Fiat and Peugeot. triggered by realistic or destructive goals.
Also Read: Stellantis CEO Carlos Tavares resigns after Jeep sales tumble in U.S.
Last month, Stellantis announced plans to lay off workers at the south Toledo assembly plant that builds the Jeep Gladiator to increase efficiency and reduce inventory at its North American operations.
Parent company Chrysler is facing declining sales in North America, a region that has historically generated healthy profits on sales of its popular Jeep and Ram vehicles. Under Tavares, the company has placed a greater emphasis on cutting costs.
Stellantis said last month that 400 workers at a Detroit auto parts plant would be out of work indefinitely. In August, the company said it would lay off 2,450 jobs at a plant in Michigan as it ended production of the Ram 1500 Classic truck.
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While the company has reduced its salaried workforce through voluntary buyouts, layoffs among manufacturing workers, represented by the United Auto Workers, have drawn the most attention from politicians.
UAW President Shawn Fain threatened a nationwide strike at facilities, claiming Stellantis failed to live up to its commitments with the union.
Stellantis said it will abide by the terms of the contract.
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First published date: December 22, 2024 08:25 AM IST