Stellantis has announced that it will not proceed with the planned more than 1,000 layoffs at the Toledo facility, which is dedicated to Jeep Gladiator production, starting in January. The automotive group, through spokesperson Jodi Tinson, confirmed: “Following a reassessment of the North American strategy, Stellantis has decided to update the WARN notice issued in November for the Toledo South site. Therefore, no employees will be placed on indefinite layoff on January 5, 2025, in relation to the previously announced shift reduction. Workers are expected to resume regular activities after the new year.”
Postponed job cuts at Stellantis’ Toledo plant in the United States
Originally, in November, Stellantis had communicated its intention to eliminate a shift at the facility, resulting in approximately 1,100 layoffs, in response to slowing Gladiator sales and the need to reduce high inventory levels. Throughout 2024, Jeep Gladiator production has been repeatedly suspended or reduced, similar to the Jeep Wrangler SUV, which is also assembled at the Toledo complex and has been subject to similar interventions. The reversal comes after Stellantis CEO Carlos Tavares resigned in early December, due to declining profits, sharp sales drop this year in the United States, and increasing criticism from dealers and unions in recent months. If Stellantis confirms layoffs in the coming months, 125 people will be affected rather than the previously planned 1,100.
“Now that Carlos Tavares is out of the picture, I believe things are starting to move in a more positive direction,” UAW Stellantis Director Kevin Gotinsky wrote in a December 19 note to the UAW Stellantis Council. “The company has already partially reversed some previously announced layoffs at Mack, Jefferson North, and Toledo Assembly. With the changes in management, the company might reconsider its plans to outsource UAW jobs.” Gotinsky added that the UAW will discuss plans with the company for the new year.
Bruce Baumhower, president of UAW Local 12, commented: “Compared to Carlos Tavares, John Elkann understands the business and has already made important changes such as reducing prices on some vehicles. This is bringing customers back to dealerships, which means we need to build more cars.” This is certainly good news, which eases tension with unions and gives hope for the future.”