Stellantis NV said Wednesday it plans to cut a shift at its Toledo plant that builds Jeep Gladiator pickups, which will result in about 1,100 indefinite layoffs by early next year.
The move from two to one shifts does not come as a surprise, with Gladiator sales slowing this year and the automaker seeking to slash pent-up inventories of the pickup as well as other models before the end of the year. The automaker said the cut could take effect by as early as Jan. 5, and that it had issued the necessary Worker Adjustment and Retraining Notification, or WARN notice, to local and state authorities.
Gladiator production has been either paused or scaled back multiple times this year already, including for the past several weeks, as workers were temporarily laid off. The Gladiator is built at the same Toledo Assembly Complex as the Jeep Wrangler SUV, which has also slowed or stopped production recently.
“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,” a Stellantis statement sent by spokesperson Jodi Tinson said.
The statement added that the company planned to eventually return to prior production levels after regaining its “competitive edge.”
The Jeep plant’s United Auto Workers leaders told members in a Wednesday letter that 1,139 people were expected to be impacted by the Gladiator layoff.
Until the cut occurs in early January, the union officials said, Stellantis plans to rotate shifts, with the day shift working some days, and the afternoon others, due to lower order numbers for the truck. On the Wrangler side of the facility, the UAW officials said they expect two shifts to be consistently running soon. That side of the plant had been temporarily reduced to one shift in recent weeks.
“I’d like to start by thanking everyone for their efforts over the last few months,” said a Stellantis human resources robocall sent to workers affected by the layoff. “I know there has been a lot of disruption in the plant recently that has caused some uncertainty, but you have also shown tremendous resilience through it … The plant intends to move from a two-shift to a one-shift operating pattern at the South Plant. We’ll also take some additional actions to improve our efficiency across the complex.”
The HR call added: We know this is difficult news to hear, but the company is making these tough decisions to control higher dealer inventory levels by aligning production to sales, which will help improve our operations here in the U.S.”
Gladiator sales in the U.S. are down 21% year-over-year through the third quarter, with 32,670 sold, prompting Jeep to recently start offering 10% off and other incentives. Sales of the pickup have been steadily declining in recent years, raising concerns from local union leaders.
UAW Local 12 President Bruce Baumhower recently told The Detroit News he is hoping Stellantis considers putting another vehicle in the plant to make up for the lost Gladiator volume — likely a smaller pickup that could be built on the same production line. He said the union had discussed that possibility years ago when the Gladiator was launched.
“When we started the Gladiator plant, the plan was to launch that (vehicle), and then depending on what the volumes were going to be, add another smaller truck to that facility,” Baumhower said.
Stellantis said affected employees under its national agreement with the UAW will receive a year of supplemental unemployment benefits in addition to state unemployment, which adds up to 74% of their pay. That is followed by a year of transition assistance, with health care coverage extending for two years.
