Ohio layoffs are reversed by Stellantis weeks after the CEO’s sudden departure

The Franco-Italian automaker Stellantis (STLAM.MI), which announced its decision to lay off approximately 1,100 employees at an Ohio Jeep facility less than three weeks after the abrupt resignation of Chief Executive Carlos Tavares, has reversed its decision.

A company spokesperson stated in an email that the company has elected not to implement an indefinite termination for any employees as of January 5, as a result of a previously announced shift reduction. Instead, the company will extend a worker adjustment and retraining notification notice.

The spokesperson stated that employees are anticipated to resume their regular work schedules following the new year.

Sources informed Reuters that Tavares’ abrupt departure from the position of CEO of the world’s fourth-largest automaker, which encompasses Jeep, Ram, Fiat, and Peugeot, was precipitated by targets that were perceived as unrealistic or detrimental by certain board members.

In an effort to enhance efficiency and reduce inventory across its North American operations, Stellantis announced intentions to lay off employees at the Toledo South Assembly Plant, which manufactures the Jeep Gladiator, last month.

The Chrysler parent company is currently experiencing a decline in sales in North America, a region that has historically generated substantial profits as a result of the popularity of its Jeep and Ram vehicles. Under Tavares, the organization’s emphasis on cost reduction was greatly heightened.

Last month, Stellantis announced that 400 employees at a Detroit automotive parts facility would be terminated on an indefinite basis. It announced in August that it would be terminating production of the Ram 1500 Classic vehicle, which necessitated the closure of up to 2,450 factories at a Michigan facility.

The United Auto Workers union, which represents the manufacturing employees of the company, has garnered the most attention from legislators, despite the fact that the company has reduced its salaried workforce through voluntary buyouts.

The UAW President, Shawn Fain, has issued a threat to stage a nationwide strike at facilities, claiming that Stellantis has failed to fulfill its obligations to the union.

Stellantis has stated that it is adhering to the terms of the contract.