Stellantis is indefinitely laying off approximately 1,100 workers at its Jeep plant in Toledo, Ohio, the US, as the company grapples with surging inventory levels and faltering sales.

According to media reports, the automotive giant is scaling back to one shift from two at the Toledo South facility, known for manufacturing the Jeep Gladiator pickup truck.

The layoffs are the latest in a series of job cuts by Stellantis, reflecting the broader challenges within the automotive industry.

The affected workers, members of the United Auto Workers union, will receive supplemental pay and state unemployment benefits, amounting to about 74% of their regular income.

Additionally, their health care coverage will be maintained for up to two years.

Stellantis CEO Carlos Tavares has emphasised the necessity of these measures to balance production with demand.

The company is actively reducing its unsold vehicle stockpile, which has grown due to a drop in sales in the US, severely impacting earnings in the first half of the year.

In a statement, as reported by CNBC, Stellantis said: “As Stellantis navigates a transitional year, the focus is on realigning its US 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.”

During the third quarter, the US deliveries for Stellantis hit their lowest point since the 2021 merger of Fiat Chrysler and PSA Group, with sales dwindling across five of its six brands.

Earlier in February, Stellantis reduced its workforce by about 1,200 at the Toledo North plant, which produces the Jeep Wrangler.

The company also laid off 2,450 factory workers in August as it ceased production of the Ram 1500 Classic truck, shifting focus to the Ram 1500 Tradesman model at Sterling Heights Assembly.

“Stellantis to lay off 1,100 Ohio Jeep plant workers ” was originally created and published by Just Auto, a GlobalData owned brand.