Stellantis announced plans to reduce production of its Jeep Gladiator at its Toledo, OH, factory, a decision that will lead to 1,000 layoffs starting in January 2025. The automaker cited market conditions for the cutbacks, but the move has drawn sharp criticism from the United Auto Workers (UAW).
The decision will reduce Gladiator production from two shifts to one. The announcement follows a similar move in October when Stellantis laid off approximately 1,000 workers in Michigan, adding to tensions with the UAW.
UAW Local 51 Vice President Luigi Gjokaj rejected the company's rationale, describing it as “a complete fallacy” in an interview with CBS News. "How can you cite market conditions when Ford and GM just reported... record profits again? It’s not the market, it’s mismanagement," he said. Gjokaj also attributed the situation to Stellantis CEO Carlos Tavares's leadership.
In September, Stellantis lowered its profit forecast for 2024, pointing to competition from China's auto industry as a key challenge. The company's revised financial outlook and recent workforce reductions have raised concerns about its future direction and adherence to previous commitments.
U.S. lawmakers have also pressured Stellantis to honor its investment agreements with the UAW, particularly as the auto industry faces global competition and shifting market dynamics.
