Dec 21 (Reuters) - Stellantis ( STLA ) has reversed
its decision to lay off about 1,100 employees at an Ohio Jeep
plant less than three weeks after the abrupt resignation of
Chief Executive Carlos Tavares, the Franco-Italian automaker
said late on Saturday.
The company has decided not to put any employees on
indefinite layoff from Jan. 5 due to a previously announced
shift reduction and will instead extend a worker adjustment and
retraining notification notice, a company spokesperson said in
an emailed statement.
Employees are expected to return to work as scheduled after
the new year, the spokesperson said.
Tavares' exit was triggered by targets deemed unrealistic or
destructive by some board members, sources told Reuters after
his sudden fall from the helm of the world's fourth-biggest
automaker, whose brands include Jeep, Ram, Fiat and Peugeot.
Last month, Stellantis ( STLA ) announced plans to lay off employees
at the Toledo South Assembly Plant, which makes the Jeep
Gladiator, in an effort to improve efficiency and reduce
inventory across its North American operations.
The Chrysler parent faces slipping sales in North America,
which has historically brought in sizable profits thanks to
sales of its popular Jeep and Ram vehicles. The company's
emphasis on cost-cutting intensified under Tavares.
Stellantis ( STLA ) said last month that 400 workers at a Detroit
automotive parts facility would indefinitely lose their jobs. In
August it said it was laying off up to 2,450 factory at a
Michigan facility as it ended production of the Ram 1500 Classic
truck.
While the company has reduced its salaried workforce through
voluntary buyouts, job cuts among its manufacturing employees
represented by the United Auto Workers union have gathered the
most attention from politicians.
UAW President Shawn Fain has threatened a nationwide walkout
at facilities, alleging that Stellantis ( STLA ) has failed to keep
promises it had made with the union.
Stellantis ( STLA ) has said it is abiding by contract terms.