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Stellantis reverses Ohio layoffs weeks after CEO's abrupt departure
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Stellantis reverses Ohio layoffs weeks after CEO's abrupt departure
Dec 21, 2024 6:38 PM

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.

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