Stellantis Cuts 1,100 Jobs Amid Jeep Gladiator Sales Decline
- The Toledo Jeep Gladiator plant will lay off about 1,100 workers permanently starting January 5 due to decreased sales.
- Stellantis plans to cut production shifts at the plant, reducing operations from two shifts to one.
- The layoffs are part of an effort to manage large inventories and improve efficiency, with the potential for future production increases.
In November 2024, Stellantis announced a significant reduction in its workforce at the Toledo South Assembly Plant, which exclusively produces the Jeep Gladiator pickup truck. The automaker will lay off approximately 1,100 workers indefinitely starting January 5, as sales of the Gladiator have slowed and inventories remain high. As a result, Stellantis has decided to eliminate one shift at the plant, transitioning to a single shift operation. This step is intended to enhance efficiency and align production with consumer demand, ultimately aiming for a better start in 2025. The decision follows a mandatory Work Adjustment and Retraining Notification issued to local and state officials. The reduction in workforce will bring the total number of employees at the plant down to about 3,300. The United Auto Workers Union will support the affected employees with supplemental unemployment benefits for a year, in addition to state unemployment benefits as they transition. Stellantis, which owns multiple brands including Chrysler, Dodge, Jeep, Ram, and Fiat, emphasized that these actions, while difficult, are necessary for the company's competitive edge. By adjusting their workforce and production strategy, company officials believe they can return production levels to prior numbers in the future. The statement highlighted that this strategy is focused on effectively managing inventories before new-year models are introduced to consumers. Stellantis's decision reflects broader industry trends where automakers are grappling with changing consumer preferences and market demands, making such adjustments vital for survival in a competitive landscape.