Stellantis returns Ohio job weeks after CEO’s sudden departure By Reuters

(Reuters) – Stellantis has reversed its decision to lay off about 1,100 workers at the Ohio Jeep plant three weeks earlier following the sudden resignation of Chief Executive Carlos Tavares, the Franco-Italian automaker said late on Saturday. .

The company has decided not to lay off workers indefinitely from January 5 due to the previously announced reduction and will instead extend the notice of staff adjustment and training notice, said a company spokesman in an emailed statement.

Workers are expected to return to work as planned after the new year, the spokesman said.

Tavares’ exit was due to targets deemed untrue or damaging by other board members, sources told Reuters after his sudden fall from the world’s fourth-largest carmaker, whose brands include Jeep, Ram, Fiat (BIT:) and Peugeot (OTC:).

Last month, Stellantis (NYSE: ) announced plans to lay off workers at the Toledo South Assembly Plant, which makes the Jeep Gladiator, in an effort to improve efficiency and reduce inventory across its North American operations.

Parent Chrysler is facing sluggish sales in North America, which has historically brought in huge profits thanks to sales of its popular Jeep and Ram vehicles. The company’s pressure to cut costs intensified under Tavares.

Stellantis said last month that 400 workers at the Detroit auto parts plant would lose their jobs permanently. In August it said it was laying off up to 2,450 jobs at its Michigan plant while ending production of the Ram 1500 Classic truck.

While the company has cut its salaried workforce through voluntary buyouts, layoffs among its production workers represented by the United Auto Workers union have garnered significant attention from politicians.

UAW President Shawn Fain has threatened a nationwide walkout, saying Stellantis has failed to keep promises he made to the union.

Stellantis said it follows the terms of the contract.