The European car giant Stellantis has reversed a decision to cut 1,100 jobs

The European car giant Stellantis has reversed a decision to cut 1,100 jobs

European auto giant Stellantis has reversed its decision to cut 1,100 jobs at its Jeep plant in Ohio, less than three weeks after CEO Carlos Tavares abruptly resigned.

In an emailed statement on Saturday, the company said it had decided not to impose indefinite lay-offs as a result of previously announced shift reductions, effective January 5. Instead, the company will give employees longer notice of job changes and retraining. Employees are expected to return to work as scheduled after the New Year.

A company spokesman said the decision came as the group "re-evaluated its strategy in North America."

In November, the Stellantis Group announced it would cut about 1,100 jobs at a Jeep assembly plant in Toledo, Ohio, from Jan. 5 and reduce the number of shifts from two to one, calling it a move to "restore competitive advantage" in the face of declining sales.

He left abruptly in early December after what some board members said were unrealistic or disruptive goals.

However, Stellantis has significantly revised its approach since Mr Donvais's departure, with the new interim chief executive assuring the French and Italian governments that production and investment in both countries would be maintained.

Stellantis is a group of 14 car brands, including Chrysler, Peugeot, Fiat and others. Group sales fell in the third quarter, down 42 per cent in North America alone.