(Reuters) -Stellantis has reversed its decision to lay off about 1,100 employees at an Ohio Jeep plant less than three weeks after the abrupt resignation of Chief Executive Carlos Tavares, the Franco-Italian automaker said late on Saturday.
The company has decided not to put any employees on indefinite layoff from Jan. 5 due to a previously announced shift reduction and will instead extend a worker adjustment and retraining notification notice, a company spokesperson said in an emailed statement.
Employees are expected to return to work as scheduled after the new year, the spokesperson said.
Tavares’ exit was triggered by targets deemed unrealistic or destructive by some board members, sources told Reuters after his sudden fall from the helm of the world’s fourth-biggest automaker, whose brands include Jeep, Ram, Fiat and Peugeot.
Last month, Stellantis announced plans to lay off employees 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.
The Chrysler parent faces slipping sales in North America, which has historically brought in sizable profits thanks to sales of its popular Jeep and Ram vehicles. The company’s emphasis on cost-cutting intensified under Tavares.
Stellantis said last month that 400 workers at a Detroit automotive parts facility would indefinitely lose their jobs. In August it said it was laying off up to 2,450 factory at a Michigan facility as it ended production of the Ram 1500 Classic truck.
While the company has reduced its salaried workforce through voluntary buyouts, job cuts among its manufacturing employees represented by the United Auto Workers union have gathered the most attention from politicians.
UAW President Shawn Fain has threatened a nationwide walkout at facilities, alleging that Stellantis has failed to keep promises it had made with the union.
Stellantis has said it is abiding by contract terms.
(Reporting by Gursimran Kaur in Bengaluru; Editing by William Mallard)
