Stellantis management said Wednesday that approximately 1,100 employees at the Toledo, Ohio-based Jeep Gladiator facility will be let go indefinitely in January.
Due to a slowdown in Jeep Gladiator sales this year, the automaker and dealerships have a lot of inventory of the pickup truck and other Jeep models. As a result, the Toledo facility will only have one shift.
Before the new models are released to the public at the end of the year, Stellantis hopes to drastically cut down on current inventory.
Only the Jeep Gladiator truck is made at the Toledo South Assembly Plant, and executives told CNBC that reducing production by removing half of the factory’s shifts will help the carmaker start 2025 off better.
Following the recent issuance of a necessary Work Adjustment and Retraining Notification to state and municipal officials, the automaker plans to start laying off the 1,100 employees at the Toledo factory on January 5.
Stellantis management informed the Detroit Free Press in a prepared statement that the Toledo factory will become more efficient as a result of the fewer work shifts.
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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,” added the statement.
In addition to state unemployment benefits, the Toledo factory workers, who are represented by the United Auto Workers Union, will also receive additional unemployment payments for a year.
Additionally, laid-off workers will continue to receive health insurance benefits for two years and are entitled for one year of transition support.
The Toledo South factory employs roughly 4,400 people; following the layoffs, that number will drop to about 3,300.
The Chrysler, Dodge, Jeep, Ram, and Fiat brands are owned by Stellantis, and corporate representatives are working to match American automakers’ output to consumer demand.
