Stellantis Cuts Back Layoffs at Toledo Assembly

Stellantis has revised its plans for layoffs at the Toledo Assembly Complex, bringing some relief to employees just before the holidays. The automaker announced Friday that it would postpone its previously planned mass layoff, originally set for January 5, and instead significantly reduce the number of indefinite job cuts.

In early November, Stellantis revealed plans to lay off over 1,100 workers at the Toledo South Assembly Plant as part of an operational shift. However, after weeks of negotiations and reassessment, the United Auto Workers (UAW) Local 12 confirmed the number has now been reduced to 125. Employees who were set to lose their jobs next month will instead return to work after the new year, according to Stellantis.

Bruce Baumhower, President of UAW Local 12, expressed cautious optimism, saying, “Who knows what it’ll look like come February, but for now, it’s down to 125 people.” He added that Stellantis’ decision to delay the layoffs also helps protect local suppliers, who would have been heavily impacted. “This could save another 1,000 supplier jobs if it all works out,” Baumhower explained.

Stellantis stated that the decision to postpone the layoffs was driven by ongoing efforts to reevaluate its North American strategy. The company is also offering retirement incentives to reduce its workforce further voluntarily.

Baumhower praised Stellantis’ Chairman John Elkann for steering the company in a better direction, compared to former CEO Carlos Tarvares. “He understands the business and has already made changes like lowering prices on certain vehicles. That’s bringing customers back to showrooms, which means we need to build more cars,” Baumhower said.

While this news brings some relief to workers at Toledo Assembly, uncertainty remains. Stellantis plans to revisit the layoff decision in February, and additional cuts are still expected at other Toledo-area facilities, including Mobis North America and KUKA Toledo Production Operations LLC.

State and local officials have advised affected workers to explore available resources to help manage this challenging time.