Stellantis Layoffs in Toledo, Ohio

By Nora Eckert

DETROIT (Reuters) – Stellantis announced on Wednesday that it is laying off approximately 1,100 employees at its Jeep Gladiator plant in Toledo, Ohio. This decision aims to enhance efficiency and reduce inventory across its North American operations.

The automaker recently restructured its senior management to address declining sales in the region, while also cutting its salaried and hourly workforce over the past year.

> "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," Stellantis (NYSE:STLA) stated.

Stellantis' stock has fallen about 39% this year. CEO Carlos Tavares' decision to reduce manufacturing jobs in Toledo has provoked anger from the United Auto Workers (UAW) union, which represents the affected employees.

UAW President Shawn Fain threatened a nationwide walkout at Stellantis factories, recalling a previous six-week strike at the automaker and its Detroit competitors. Fain cited Stellantis’ delays in a planned billion-dollar investment for a new battery plant in Belvidere, Illinois, as a breach of a labor deal made with the union last year.

Stellantis maintains that it is compliant with the agreement's terms. The UAW did not respond to requests for comments regarding the indefinite layoffs in Toledo, effective as early as January 5.

Both Vice President Kamala Harris and President-elect Donald Trump have voiced concerns about the company's workforce decisions, encouraging Stellantis to retain jobs in the U.S. Last week, Trump threatened to impose a 100% tariff on Stellantis if it moved U.S. jobs to Mexico.

Affected employees at Toledo's South Assembly Plant, which is shifting from two shifts to one, will receive one year of supplemental unemployment benefits as per the UAW contract.