TOLEDO, Ohio — CLARIFICATION - This story is updated to reflect new information that Jeep employees on both the Gladiator and Wrangler lines will be affected.
Over 1,000 employees are expected to be laid off indefinitely at the Toledo Assembly Complex as early as Jan. 5 due to a change in the operating pattern, according to Stellantis.
The company said it is moving from a two-shift to a one-shift operating pattern at the Toledo South Assembly Plant, resulting in "indefinite layoffs" of approximately 1,100 represented employees. According to UAW Local 12 President Bruce Baumhower, this total includes 500 people from the Gladiator lines in the south side and 639 people on the Wrangler lines in the north plant.
Stellantis provided the following statement to WTOL 11:
As Stellantis navigates a transitional year, the focus is 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.
As a result, the Company will adjust the operating pattern at the Toledo South Assembly Plant, moving from a two-shift to a one-shift operating pattern, while also improving overall efficiency across the Complex. These actions will result in the indefinite layoffs of approximately 1,100 represented employees.
These are difficult actions to take, but they are necessary to enable the Company to regain its competitive edge and eventually return production to prior levels. In accordance with the 2023 Collective Bargaining Agreement, the Company will provide affected employees with one year of supplemental unemployment benefits (SUB) in combination with any eligible state unemployment benefits, equaling 74% of their pay, followed by one year of transition assistance. Healthcare coverage also will continue for two years.
The Company has issued WARN (Worker Adjustment and Retraining Notification) notices to the respective state and local governments as well as the UAW. These actions will be effective as early as Jan. 5, 2025.
The WARN notice is below:
The following letter was provided to WTOL 11 by an affected Jeep employee:
Toledo mayor Wade Kapszukiewicz provided the following statement in response to the layoffs:
Today’s announcement of roughly 1,100 layoffs at the Toledo Assembly Plant is undoubtedly a blow for many Toledo families. In the coming days and weeks, we will work closely with the UAW, Lucas County, and other partners to be prepared to mobilize resources and support those workers who will be affected.
Jeep is and will continue to be a top employer and essential to Toledo’s economy. While we know the impact of the layoffs will affect our income tax revenue, we continue to be optimistic heading into budget season that we have established a solid financial position for weathering these unexpected changes.
Toledo is resilient, but more importantly, we are a community that rallies around its own. I’m confident that we will continue to build a strong economy full of opportunity for everyone.
Arthur Wheaton, a professor at Cornell University's School of Industrial and Labor Relations, said that indefinite layoffs are nothing new in the auto industry.
"Indefinite layoffs are always scary," Wheaton said. "It's not the first time we've had them. If you go back to about 1982, we had up to 250,000 UAW members in the auto industry who were on indefinite layoff."
Wheaton also said the shift reduction does not mean the layoffs are permanent. That depends on a potential future strategy.
"It's possible that they could make the decision to add a smaller truck or add another product to make up for the lower demand for the Gladiator currently," he said.
He said more variety means a need for more lines, more workers and an increase in customer intrigue both in the U.S. and world.
"You need to be able to sell your product globally, and Stellantis is a very global company," Wheaton said. "They are going to need the product in Europe, they need to have the ability to sell them, and it would be good if you could have Jeep products sold in other parts of the world as well. "
But that could depend on many economic factors, including what happens when President-elect Donald Trump assumes his second term in office.
But in the end, Wheaton said the end goal remains the same.
"You need to have the general public feel confident that they can dump 50, 60 grand on this new vehicle, I think my job is going to be safe, I think the interest rate is going to be affordable and I'm willing to do that for my family," Wheaton said.