Stellantis has reversed its plan to lay off approximately 1,100 employees at its Toledo South Assembly Plant in Ohio. This decision comes less than three weeks after the sudden resignation of Chief Executive Carlos Tavares.
Initially, the company intended to implement indefinite layoffs starting January 5 as part of a shift reduction aimed at enhancing efficiency and reducing inventory across its North American operations. However, a company spokesperson announced late Saturday that Stellantis will instead extend a worker adjustment and retraining notification notice, allowing employees to return to work as scheduled after the new year.
The abrupt departure of Tavares was reportedly due to disagreements with board members over targets they considered unrealistic or potentially harmful. Under his leadership, Stellantis had intensified cost-cutting measures in response to declining sales in North America, a region traditionally profitable for the company due to its popular Jeep and Ram vehicles.
In recent months, Stellantis announced several workforce reductions. Last month, the company disclosed plans to lay off 400 workers at a Detroit automotive parts facility indefinitely. In August, it revealed intentions to cut up to 2,450 factory jobs at a Michigan plant as it ceased production of the Ram 1500 Classic truck. While voluntary buyouts have reduced the salaried workforce, layoffs among manufacturing employees represented by the United Auto Workers (UAW) union have attracted significant political attention.
UAW President Shawn Fain has threatened a nationwide walkout, alleging that Stellantis has failed to honor commitments made to the union. The company’s recent decision to retain the Ohio plant’s workforce may be seen as a response to mounting union pressure and internal leadership challenges.
Stellantis, formed from the merger of Fiat Chrysler and PSA Group, continues to navigate complex dynamics within its North American operations. The reversal of the Ohio layoffs reflects the company’s ongoing efforts to balance operational efficiency with workforce stability amid evolving leadership and market conditions.