Stellantis NV, the owner of the Jeep and Ram brands, said it would lay off about 1,100 workers at its Jeep plant in Toledo, Ohio, the latest in a series job cuts as the automaker contends with bloated inventory and declining sales.

The company is moving to one shift from two at its Toledo South facility, which makes the Jeep Gladiator pickup truck. Affected members of the United Auto Workers union will receive supplemental compensation, which when combined with state unemployment benefits, should equal about 74% of their normal pay, the company said. Their health care coverage will continue for two years.

Stellantis said the decision was needed to manage output levels to better align with sales as it works to cull a stockpile of unsold vehicles.

“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 carmaker said in a statement. 

Chief Executive Officer Carlos Tavares has been cutting jobs and slashing capacity at American factories since a plunge in U.S. sales sliced first-half earnings nearly in half.

U.S. deliveries in the third quarter fell to the lowest level since the company was formed from the 2021 merger of Fiat Chrysler and France’s PSA Group. Sales declined at five of its six brands, including a 6% slide at the quintessential SUV brand Jeep, despite strong US demand in the segment. 

In February, Stellantis cut about 1,200 jobs at its Toledo North plant, which makes the Jeep Wrangler. Last Tavares in September 2023 appointed a new CEO of the brand, Antonio Filosa, who has been lowering the sticker prices and adding content to entice buyers.