(Reuters) – Stellantis has reversed its decision to lay off about 1,100 employees at a Jeep plant in Ohio less than three weeks after the sudden resignation of Chief Executive Officer Carlos Tavares, the Franco-Italian automaker said late on Saturday.
The company has decided not to place employees on indefinite layoff effective Jan. 5 due to a previously announced shift reduction and will instead extend the employee adjustment and retraining notice, a company spokesman said in an emailed statement.
Employees are expected to return to work as planned after the new year, the spokesman said.
Tavares’ departure was prompted by goals that were seen as unrealistic or destructive by some board members, sources told Reuters after his sudden fall from the helm of the world’s fourth-largest automaker, whose brands include Jeep, Ram, Decree (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 inventories at its North American operations.
Chrysler’s parent is facing sliding sales in North America, which has historically generated significant profits thanks to sales of its popular Jeep and Ram vehicles. The company’s emphasis on cost reduction intensified under Tavares.
Stellandis said last month that 400 workers at an auto parts facility in Detroit would be out of a job indefinitely. In August it said it was laying off up to 2,450 workers 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 workers represented by the United Auto Workers union have garnered the most attention from politicians.
UAW President Shawn Fain has threatened a nationwide walkout at the facility, claiming Stellantis has not kept promises he made with the union.
Stellandis said he abides by the terms of the contract.
