Stellantis is laying off more than 1,000 employees at Jeep indefinitely assembly factory in Ohio as the automaker significantly reduces inventory levels to meet demand.

Stellantis, the parent company of Chrysler, Jeep, Dodge and Ram, has issued Worker Adjustment and Retraining Notification (WARN) notices to the United Auto Workers union as well as relevant state and local governments.

The 1,100 layoffs at the Toledo South Assembly Plant will be effective January 5, 2025.

Stellanis said the company is in the midst of a “transitional year” and is focused on “realigning its U.S. operations to ensure a strong start to 2025.”

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Workers assemble components for a Jeep Cherokee on the production line in Toledo, Ohio, on February 28, 2014. (via Ty Wright/Bloomberg/Getty Images)

The company said layoffs were difficult, but were done “to provide a competitive advantage and finally back to production to previous levels.”

The 3.64 million-square-foot complex produces the Jeep Gladiator, Jeep Wrangler and Jeep Wrangler 4xe. For over a decade, the company has made significant investments in the facility to increase production; this includes a $1.2 billion investment in Toledo’s North plant since 2011. In 2017, the company confirmed it would invest another $1 billion to retool and modernize Toledo’s South facility. .

These investments also included the hiring of hundreds of workers and additional shifts to support increased production.

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The company noted in its third-quarter earnings report after seeing a 27% decline in net revenues compared to the same period in 2023 that it was in the midst of North American inventory declines and that U.S. dealer inventory levels were a “priority of focus”

A worker works on the suspension of a 2014 Jeep Cherokee at a factory in Toledo, Ohio. (Bill Pugliano/Getty Images)

The company reduced U.S. dealer inventory levels by more than 80,000 units between June and October. The company said its plan is to reduce inventory by 100,000 units by the end of November.

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As determined under the 2023 Collective Bargaining Agreement, affected employees, along with those who are eligible, will receive an additional year of unemployment benefits. state unemployment benefitsIt corresponds to 74% of their salaries.

Following this, employees will receive one year of transition assistance. Health insurance coverage will continue for two years.