Stellantis, the parent company of Chrysler, Jeep, Dodge, and Ram, has announced plans to lay off 1,000 workers indefinitely at its Toledo South Jeep Assembly Plant in Ohio, as well as a reduction of its inventory levels to respond to lower demand. The goal is to “realign its U.S. operations,” in a bid to better position itself over the coming year.
Dealer inventory levels were reduced by more than 80,000 units between June and October, with greater reductions in the pipeline for the end of the year. The layoffs were deemed necessary until the plant can return to previous production levels.
The 3.64 million-square-foot complex is where the company manufactures Jeep Gladiators, Wranglers, and Wrangler 4xe models. It has been the source of investment over the last several years to increase production, which included the addition of workers, many of whom are likely amongst those who received notices.
Worker Adjustment and Retraining Notification (WARN) notices were issued to state and local governments, as well as the United Auto Workers Union, and the layoffs will become effective as early as January 5.
As part of the 2023 Collective Bargaining Agreement, impacted employees will receive one year of supplemental unemployment benefits in addition to any eligible state unemployment benefits equal to 74 percent of their pay, as well as one year of transition assistance and healthcare coverage for two years.
