An indefinite number of employees at Jeep's plant in Ohio will be laid off by Stellantis.

• On Wednesday, Stellantis announced plans to reduce production at a Jeep plant in Ohio by cutting a manufacturing shift and indefinitely laying off approximately 1,100 workers.
• The company has been battling high inventory levels and lower earnings this year.
• The Toledo South Assembly plant produces the Jeep Gladiator pickup truck.

The Jeep plant in Ohio will indefinitely lay off approximately 1,100 workers and cut a manufacturing shift, announced the automaker on Wednesday.

The Toledo South Assembly Plant of the company, which has been facing high inventory levels and lower earnings this year, has decided to cut production to one shift in order to better match the output with the demand of the Jeep Gladiator pickup, its only product.

Stellantis is focusing 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, according to an emailed statement from the company.

According to Stellantis, the layoffs will become effective on Jan. 5, as announced in conjunction with the required notices to government agencies under the Worker Adjustment and Retraining Notification Act.

Stellantis employees at the plant are represented by the United Auto Workers union, which did not immediately respond for comment.

Stellantis announced that it will offer laid off employees one year of supplemental unemployment benefits, in addition to any eligible state unemployment benefits, totaling 74% of their pay, and two years of continued health-care coverage, in accordance with its 2023 contract with the UAW.

Stellantis, which includes the Jeep brand, is trying to recover from a decline in U.S. sales with a turnaround plan. Jeep, a highly sought-after brand in the automotive industry, has experienced a five-year sales slump, with 2024 on track to become the sixth year in a row.

The plan involves reducing prices for all models, including high-volume ones like Jeep Compass and Grand Cherokee SUVs, offering special deals such as incentives or 0% financing, and boosting marketing and advertising expenses.

Despite most auto brands experiencing growth in sales last year, Jeep's U.S. sales decreased by 6% from a peak of over 973,000 SUVs sold in 2018 to approximately 643,000 units in 2019.