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Stellantis will indefinitely lay off more than 1,000 employees at its Jeep assembly plant in Ohio to dramatically reduce inventory levels to meet demand.
Stellantis, the parent company of Chrysler, Jeep, Dodge and Ram, has issued Worker Adjustment and Retraining Notifications (WARN) notices to their respective state and local governments and the United Auto Workers Union.
The 1,100 job cuts at the Toledo South Assembly Plant will take effect as early as January 5th.
Stellanis said the company is in the midst of a “year of transition” and is focused on “reshaping our U.S. operations to get off to a strong start into 2025.”
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Workers assemble Jeep Cherokee parts on a production line on February 28, 2014 in Toledo, Ohio. (Ty Wright/via Bloomberg/Getty Images)
The company acknowledged that the job cuts will be difficult but necessary to “increase competitiveness and ultimately return production to previous levels.”
The 3.64 million square foot complex manufactures the Jeep Gladiator, Jeep Wrangler and Jeep Wrangler 4xe. For more than a decade, the company has invested heavily in the Toledo North plant to increase production, including a $1.2 billion investment in the North plant since 2011. In 2017, the company confirmed it would invest an additional $1 billion in retooling and modernizing its Toledo south plant. .
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These investments included hiring hundreds of workers and adding shifts to support increased manufacturing.
The company said in its third-quarter earnings report that it was in the midst of inventory reductions in North America and that U.S. dealer inventory levels were “a top priority,” following a 27% decline in net revenue compared to the same period in 2023. It is a matter of concern.” . ”
A worker works on the suspension of a 2014 Jeep Cherokee at a factory in Toledo, Ohio. (Bill Priano/Getty Images)
The company reduced inventory levels at U.S. dealers by more than 80,000 vehicles from June to October. The company says it plans to reduce inventory by 100,000 units by the end of November.
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As provided under the 2023 Collective Bargaining Agreement, affected employees will receive one year of additional unemployment benefits equal to 74% of their salary, combined with eligible state unemployment benefits. You will receive it.
Employees will then receive one year of transition assistance. Medical insurance will continue for two years.
