(Reuters) – French-Italian automaker Stellantis said late on Saturday it had reversed its decision to lay off about 1,100 employees at its Jeep, Ohio, plant less than three weeks after the surprise resignation of CEO Carlos Tavares.
The company has decided not to lay off any employees indefinitely effective Jan. 5 due to previously announced shift reductions, and will instead extend worker adjustment and retraining notice, a company spokesperson said in an emailed statement.
The spokesperson said employees are expected to return to work as scheduled after the new year.
Sources told Reuters that Tavares' exit was due to goals that some board members considered unrealistic or destructive after his sudden fall from leadership of the fourth-largest automaker in the world, whose brands include Jeep, Ram and Ram. Fiat (BIT:) and Peugeot (OTC:).
Last month, Stellantis (NYSE:) announced plans to lay off employees at its Toledo South Assembly Plant, which makes the Jeep Gladiator, in an effort to improve efficiency and reduce inventory across its North American operations.
The parent company of Chrysler is facing declining sales in North America, which has historically achieved large profits thanks to sales of its famous vehicles, Jeep and Ram. The company's focus on cutting costs has intensified under Tavares.
Stellantis said last month that 400 workers at an auto parts facility in Detroit would lose their jobs indefinitely. In August, it said it would lay off up to 2,450 plants at a facility in Michigan, where it ended production of the Ram 1500 Classic truck.
While the company has reduced its paid workforce through voluntary buyouts, job cuts among its manufacturing employees, who are represented by the United Auto Workers union, have attracted the most attention from politicians.
UAW President Shawn Fain has threatened a nationwide strike at the facilities, alleging that Stellantis has failed to deliver on promises it made with the union.
Stellantis said it was abiding by the terms of the contract.
