Stellantis Plans To Layoff 1,139 Workers In Toledo

Stellantis has confirmed plans to lay off 1,139 workers at its Toledo Assembly Complex in Ohio. The layoffs will primarily affect the Toledo South plant, which produces the Jeep® Gladiator (JT). As of January 5, 2025, the plant will transition to a single-shift operation, reducing workforce requirements. This move is part of the company’s efforts to streamline operations, improve efficiency, and manage production levels more effectively as part of broader restructuring initiatives in North America.

“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,” Stellantis said.

The decision to cut jobs comes as Stellantis is grappling with financial pressures, including a significant drop in stock value—approximately 39% this year. To address these challenges, the automaker has been focused on reducing excess inventory and adjusting its production schedules. However, the announcement has sparked backlash from the United Auto Workers (UAW), which represents the affected employees.

UAW President Shawn Fain has criticized the layoffs, asserting that Stellantis is breaking its commitments during last year’s labor deal. “Stellantis is not keeping its promises. This move directly violates the agreements we made with the company, and we will hold them accountable,” Fain said in response to the announcement.

He has threatened further actions, including a potential nationwide walkout, in response to the company’s job cuts and its delays in a planned $1 billion investment in a new battery plant in Belvidere, Illinois. Fain emphasized, “We are not going to sit by while Stellantis undermines the progress we fought so hard to achieve.” The UAW argues that these delays indicate a failure to honor promises made to the workers.

In addition to the job cuts, Stellantis will continue operating its Toledo North plant, where the Jeep Wrangler and Wrangler 4xe (JL) is produced. Although the Toledo North plant is not currently facing layoffs, the reduced workforce at the South plant could have ripple effects throughout the region. Stellantis has also emphasized that laid-off employees will receive supplemental unemployment benefits per the UAW contract terms.

“This was a difficult decision, but the company is committed to supporting affected workers with the benefits and resources outlined in the contract,” the automaker added.

This decision also follows increasing political scrutiny. Vice President Kamala Harris and President-elect Donald Trump have both voiced concerns about Stellantis potentially shifting jobs to Mexico. Trump specifically warned automakers of the economic consequences, including imposing a 100% tariff on Stellantis products if it moves U.S. jobs overseas.

“If Stellantis decides to move jobs to Mexico, I will impose a 100% tariff on all their vehicles,” Trump stated last week. “American workers deserve better than this.”