Stellantis to Lay Off 1,100 Workers at Jeep Plant in Ohio

Stellantis said Thursday it would lay off 1,100 workers at its Jeep factory in Toledo, Ohio in an effort to "regain its competitive edge" as it struggles with falling sales.

Stellantis, a 14-brand group that includes Peugeot, Fiat and Chrysler, said it would move from a two-shift to a one-shift operation at the Toledo South Assembly Plant in 2025.

Another 400 employees will be transferred to a "third-party service provider," it added it a statement.

Photo: Stellantis

"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," the statement said.

Stellantis sales sank in the third quarter, with a 42-percent drop in North America alone.

Photo: Stellantis

The group offered promotional deals as U.S. dealerships have struggled to reduce their inventories.

"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," it said.

Watch: 2024 Jeep Gladiator Overview

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