TOLEDO, Ohio — The automaker Stellantis announced Wednesday it plans to eliminate a shift at its facility in Toledo, leading to the layoff of about 1,100 workers, reports say.
The layoffs at the Toledo Assembly Complex will be effective Jan. 5, WTOL Channel 11 reports. Stellantis manufactures the Jeep, Ram, Chrysler, Dodge and Fiat brands. The layoffs affect the South plant in Toledo, which assembles the Jeep Gladiator.
“As Stellantis navigates a transitional year, the focus is on realigning its U.S. operations to ensure a strong start to 2025, which includes taking the difficult but necessary action to reduce high inventory levels by managing production to meet sales,” spokeswoman Jodi Tinson said in a statement to the Detroit Free Press. “As a result, the company will adjust the operating pattern at the Toledo South Assembly Plant, moving from a two-shift to a one-shift operating pattern, while also improving overall efficiency across the complex.”
CNBC reports Stellantis has been dealing with high inventory and decreased sales over the past year.
WTVG Channel 13 reports workers who are laid off will receive a year of supplemental unemployment benefits combined with eligible state unemployment benefits to equal 74% of their pay. Affected workers also will receive one year of transition assistance and two years of healthcare coverage.
Wade Kapszukiewicz, Toledo’s mayor, said in a statement that the announcement is a “blow for many Toledo families” and to the city’s budget, WTOL reports.
“In the coming days and weeks, we will work closely with the UAW, Lucas County, and other partners to be prepared to mobilize resources and support those workers who will be affected,” Kapszukiewicz said. “While we know the impact of the layoffs will affect our income tax revenue, we continue to be optimistic heading into budget season that we have established a solid financial position for weathering these unexpected changes.”
The Free Press reports that Stellantis already has cut a shift at a truck assembly plant in Warren, Michigan, and in September warned of future layoffs “across its footprint.”