- Affected employees will receive 74% of their regular pay for one year as support.
- Jeep will reduce Gladiator production at the Toledo plant from two shifts down to one.
- Stellantis says the layoffs are part of a broader realignment of its US operations.
Just when it seemed the standoff between Stellantis and the United Auto Workers (UAW) union couldn’t get any tenser, the automaker has now announced that 1,139 workers at its Toledo Assembly Complex are set to be indefinitely laid off, starting as soon as January 5. If that sounds drastic, well, that’s because it is—but Stellantis insists it has no choice.
The reason for the layoffs? Stellantis plans to scale down production at the plant responsible for building the Jeep Gladiator and Wrangler, reducing from two shifts to just one. The change in production will specifically impact the Gladiator that’s built in the South plant of the facility.
Read: Even A 71% Surge In Compass Sales Can’t Stop Jeep’s Q3 Decline
In a letter sent out to workers at the site, the UAW confirmed that both the day and afternoon shifts will remain in place only until January 5. After that, it’s lights out for hundreds of jobs.
Stellantis says it’s realigning operations in the United States and will provide affected employees with one year of supplemental unemployment benefits alongside any eligible state unemployment benefits, equating to 74% of their regular pay. Workers will also be provided with one year of transition assistance and healthcare coverage for two years after they are let go.
“As Stellantis navigates a transitional year, the focus is on realigning its U.S. operations to ensure a strong start to 2025, which includes taking the difficult but necessary action to reduce high inventory levels by managing production to meet sales,” the company said in a statement shared to WTOL 11.
“As a result, the Company will adjust the operating pattern at the Toledo South Assembly Plant, moving from a two-shift to a one-shift operating pattern, while also improving overall efficiency across the Complex. These actions will result in the indefinite layoffs of approximately 1,100 represented employees. These are difficult actions to take, but they are necessary to enable the Company to regain its competitive edge and eventually return production to prior levels.”
The writing has been on the wall for quite some time. Jeep’s sales have been on a steady decline, down 34% last year from peak levels. Production of the Grand Cherokee and Wrangler was even halted for several days in September, a “temporary pause” that hinted at deeper troubles. Stellantis said the move was to “improve operations in the U.S. market” and is believed to have been made in part to help reduce high inventory levels that have hurt several of its brands throughout much of the year.
