East North Central Division (Illinois, Indiana, Michigan, Ohio, Wisconsin)
Mass Layoffs Updates for April 25, 2008
Allstate Corp., the nation's biggest publicly traded home and auto insurer, has plans to lay off 109 information technology workers in Northbrook, Illinois, according to the Chicago Tribune. This makes the second round of layoffs in the Northbrook area in the past two years but the first under new Chief Executive Tom Wilson. The layoffs represent less than 3 percent of Allstate's IT staff and are being made so that the company will be able to better prioritize its projects and become more efficient, according to Allstate spokesman Jonathan Friedman.
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Tyco Electronics Corp. will close its plant in Milwaukee, Wisconsin and lay off 101 workers, according to the Milwaukee Business Journal. Tyco manufactures electrical and electronic components, and the company says that the plant closure is necessary to remain competitive and to better align its manufacturing resources with its customers' needs. The layoff will affect 58 regular and 43 temporary employees. A few of the workers will be able to relocate within the company and others will be offered severance packages and outplacement services.
Eli Lilly & Company will be streamlining a part of its manufacturing operations in Indianapolis, Indiana and as a result is offering a voluntary exit program to reduce its workforce by 500 employees. Most of the employees who will be leaving Lilly will be in the manufacturing departments that manufacture active pharmaceutical ingredients for the insulin products Humalog and Humulin as well as for the osteoporosis medicine Forteo with a few of the voluntary exits being in selected areas of research and development.
Mass Layoffs Updates for April 18, 2008
ATA Airlines Inc. in Indianapolis, Indiana has filed for bankruptcy protection and grounded all flights. As a result, the airline has laid off almost all of its 2,230 employees and left thousands of passengers stranded according to the Virginian-Pilot.
The Ohio Department of Rehabilitation & Correction has laid off more than 500 workers due to budget concerns. The department says that it also will not fill 162 vacant positions in order to eliminate a total of 701 positions, according to a report by Columbus Business First. The workers who were laid off held positions on the department's administrative, clerical and maintenance staff.
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NECCO has announced that it will close a plant in Pewaukee, Wisconsin that makes candy Valentine hearts and Candy Raisins, and 137 people will be laid off. The Associated Press has reported that the plant will close on May 30. A spokesperson said that overseas makers of candies have put the company under increased pressure and the small candy manufacturing plants are folding under the pressure.
Merrill Lynch & Co. Inc. will lay off 400 to 500 workers, beginning immediately. The Gazette reports that the company is closing down most of its First Franklin sub-prime mortgage lending unit in Cincinnati, Ohio due to the continuing decline of the U.S. mortgage markets. The First Franklin loan servicing business will remain open.
Trane Inc. is closing the 100-year-old American Standard plumbing fixtures plant in Toledo, Ohio and laying off 165 workers. Modern advances in manufacturing technology have made it possible to export more plumbing products with fewer workers.; The Washington Post reports that instant communication and cheaper shipping options have also played a part in making it easier to conduct business worldwide.
Johnson Rubber Company, Inc. of Ohio will shut down its two plants in Middlefield and North Baltimore, Ohio in April and lay off 500 workers according to The Associated Press State & Local Wire. The company manufactures parts for use in the auto, boating and construction industries. After an audit last year turned up a $4 million discrepancy, the company filed for Chapter 11 bankruptcy protection on December 11, 2007.
National City Mortgage has a new chief executive officer, and the Dayton Business Journal reports that the focus of the new officer is to strengthen the company after a rocky year in 2007. The company's revenue is now about 1/3 of what it was just 4 years ago. Local employees in Ohio have been laid off and the company has now announced that its wholesale mortgage division will be closing and 900 people will be laid off in March.
Pactiv Corporation, the manufacturer of Hefty trash bags has decided to lay off about 200 workers in Lake Forest, Illinois. The layoffs are part of a restructuring plan and are also in part due to the high cost of resin used in the manufacturing of the trash bags.
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Tellabs Inc. in Naperville, Illinois has reportedly been in takeover talks with Nortel Networks. The communication equipment maker has announced that it is planning to lay off 225 employees, which is about 6 percent of its workforce. Earlier the company had said the layoff would only affect 100 employees.
Fairmount Park in Collinsville, Illinois has cut 30 days from its upcoming schedule and laid off as many 100 employees. The Collinsville horse track will open on April 18th and run only 60 races Tuesday afternoon and Friday and Saturday nights through September 1st. This is in stark contrast to 10 years ago, when the track hosted 232 dates. The number of races has gradually decreased, especially after harness racing ended in 1999. The schedule reduction will affect about 1,500 horse owners, trainers, groomers and others that race and work at Fairmount Park.
Washington Mutual Inc. aggressively entered the Chicago-area retail banking scene in 2003, but has now announced that it will close 25 of its 146 Chicago offices. This is the company's second significant wave of branch closings in little more than a year. Approximately 150 workers will be laid off due to the closings, which will begin March 18th and continue until April 10th.
Kraft Foods Inc. in Winnetka, Illinois, the world's second-largest food manufacturer, has announced that it will lay off several thousand workers as the CEO streamlines operations. These layoffs may push Kraft's restructuring savings above $1 billion by the end of 2008. The CEO who took charge of the company in 2006 is accelerating the efforts to reduce costs and spur sales growth that began in 2004.
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Klaussner Furniture Industries Inc. will be closing its Sofa Express and More stores. The company will close 14 Ohio stores, and its headquarters and warehouse and will lay off 436 workers. Of the workers whom will be laid off, 253 work at the Groveport, Ohio headquarters.
Neenah Foundry Company has announced a restructuring plan intended to reduce costs and improve its general operating efficiencies. The restructuring plan will cut primarily salaried employees at the company's operating facilities. Neenah Foundry Company is one of the largest independent foundry companies in the United States. The company and its subsidiaries manufacture and market a wide range of iron castings and steel forgings for the heavy municipal market and selected segments of the industrial markets.
Chrysler LLC has announced that it will cut the third shift at its Belvidere, Illinois assembly plant. This cut will cause the company to lay off as many as 1,000 employees. The reason for the cuts seems to be sluggish sales of the three vehicles built at Belvidere; Dodge Caliber and Jeep Compass and Patriot. There are 3,800 employees at the Belvidere assembly plant and a nearby stamping plant, including 600 temporary workers who will be the first to be laid off because they aren't covered by job security provisions of the UAW's contract. The layoffs of permanent employees will be based on lowest seniority.
Insurance brokerage Aon Corporation of Chicago, Illinois, faced by intense competition and falling rates, has announced that it will cut 2,700 jobs as part of a restructuring plan that will eventually save it about $240 million a year. The job cuts which amount to about 6 percent of its work force was announced as Aon reported third-quarter net earnings of $204 million, up 92 percent from a year earlier. However, the industry has been struggling to cope with three straight years of sinking insurance rates. The job cuts will be mostly in back-office operations, with about 1,100 expected to be"off-shored or outsourced," the company said. It will include consolidation of its human resources, finance and information technology divisions. Aon Corporation provides insurance and risk management, consulting, and insurance underwriting worldwide through its subsidiaries and currently has about 43,000 employees.
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General Motors Corporation has announced a mass layoff of 767 workers at its Hamtramck, Michigan assembly plant will be necessary because of lagging demand for two of its high-end sedans. GM will cut one of two shifts at the Poletown factory starting Dec. 14. The factory builds Buick Lucerne and Cadillac DTS, which have been in high demand this year.
Toll Brothers, Inc. had said that the sluggish housing market has resulted in layoffs at a plant in Knox, Indiana. The company laid off 20 workers early last week at its Toll Integrated Systems plant in Knox. The factory builds floor and roof trusses, walls, staircases and other building components used in Toll Brothers homes. Toll Brothers bought an existing 40,000-square-foot plant and added on 90,000 square feet in May 2006. The company says that the layoffs have been the result of slow sales in Illinois and Michigan. The factory employed around 85 people before the layoff.
W.W. Grainger Inc. of Lake Forest, Illinois, a supplier of facilities maintenance products, has said it plans to cut up to 125 information technology jobs in the fourth quarter. The company currently employs more than 17,000 people.
Greenpoint Mortgage Funding Inc. has alerted the state of Illinois that it is closing an office at in Downers Grove, and laying off 61 people. The company says the reason for the office closing is that mortgage defaults have been rising, particularly among subprime borrowers.
Volkswagen, the world's fourth largest carmaker plans to cut 25% of its U.S. employees as it moves its U.S. headquarters from Detroit to Washington D.C. next April. Approximately 400 employees will likely move with the headquarters, 600 employees will remain in at the Detroit location, while 400 employees will lose their jobs. Volkswagen plans to restructure its operations by changing its marketing strategy and localizing production.
Termination notices will begin on September 17 for 1,093 workers at the Chicago Transit Authority (CTA). The CTA cited inadequate funding as the cause for the mass layoff. The agency is facing a budget shortfall of $110 million and has requested funding approval from Illinois state legislators.
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Wabash National Corp. recently announced the mass layoff of about 300 employees in order make necessary cutbacks as part of a $10 million reduction in spending due to a slowdown in business within the industry. Wabash manufactures truck-trailers. No full-time production workers have yet been affected by the layoffs.
Ohio University recently announced the layoff of 32 unionized custodial employees in preparation for an upcoming reduction of $2 million for the upcoming fiscal year. The reductions are being made in response to rising costs for health care, utilities and wages. The vice president for finance and administrations said that several new job positions would be created to help save the university more money. Among the new jobs being created are three new sergeants in the OU police department in addition to jobs in risk management and financial analysis.
General Motors Corp. recently announced the possible layoff of 500 workers as it approved a production cut at its Pontiac Assembly Center. The layoffs and production cuts are being attributed to a sluggish heavy-duty pickup truck market. GM will now produce 20 percent fewer pickups in two shifts at the plant.
Visteon Corporation based in Van Buren Township, Michigan announced its Bedford, Indiana auto parts plant would close by next April. The fuel-delivery module plant supplies products to Ford but it is not part of the Visteon's core business which consists of climate control, electronics, interiors and lights. The company informed the affected 685 workers about the decision in June.
So far Pall Corporation has laid off 85 of the 300 jobs it announced plans for cutting last year. Three of the laid off employees accepted transfers while the other 83 chose to accept a severance package or retire. The Scio Township, Michigan IV and syringe filter manufacturing plant is now scheduled to close by the end of this year. The reason given for the 6 month delay was an effort to move the manufacturing line slowly so as not to disrupt customers shipments.
Washington Mutual Bank is closing its subprime mortgage office in Itasca, Illinois on July 31. The closing was filed with the Illinois department of Commerce and Economic Opportunity. The decision to close the facility was based on changes in the subprime market which lends to borrowers with poor credit history. With mortgage defaults on the rise among subprime borrowers and pressure from lawmakers, many subprime lenders are cutting back on loans.
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The CTA recently sent layoff notices to nearly 1,100 workers in an attempt to close an $110,000 million budget gap. It has already taken $18.1 million in spending cuts by eliminating non-union jobs, deferring non-union fare hikes, increasing revenues from under "L" parking and instituting mandatory furlough dates. In addition to the layoffs, CTA riders can expect a significant raise in cash fares for riding buses and trains.
Kohler Co. recently announced its plans to lay off 160 employees at its Sheboygan County operations. The layoffs will affect the company's distribution center and cast iron and engine divisions in Kohler, and the generator division in a Town of Mosel factory. The layoffs are said to be related to a slow production in the housing industry.
Parker Hannifin recently announced its plans to lay off 170 workers from its hose plant in Eastlake, Ohio. Company officials claim that production capacity issues were the main reason for the layoffs. The plant produces fittings and connectors for hydraulic hoses.
Automotive interior maker Intier Automotive Interiors recently announced its plans to lay off 200 employees during the closure of its Brighton plant this fall. Intier Automotive is a division of Canadian auto parts maker Magna International. Company officials say they will help place laid off employees in open positions where possible. The layoffs reflect the company's need to bring work force levels in line with challenging North American market conditions.
Stora Enso North America recently announced the mass layoff of 133 employees due to the sale of its Hotel Mead and Conference Center. A Stora Enso spokeswoman said that the Wisconsin Rapids-based paper products company has entered into a contract to sell the hotel to an undisclosed private investor. Twenty-two employees are not represented by a union, while the remaining 111 are represented by UNITE HERE Local 315.
The mainframe computer software maker Compuware Corp. recently announced the mass layoff of 245 jobs and expects to pay out $16 million in severance-related costs and about $5 million in other costs. The layoffs will affect more than 3 percent of the company's work force and are designed to cut overall costs and improve the efficiency of the company's operations.
Ashwaubenon School District recently announced the layoffs of eight teachers due to the decreased enrollment of students. This district in Wisconsin expects to eliminate four teaching positions at Parkview Middle School, two at Valley View Elementary School and one each at Pioneer and Cormier elementary schools.
Louisiana-Pacific's Tomahawk mill recently announced the temporary layoff of 106 employees in its production and maintenance areas. A plant manager said the layoffs will be conducted on account of excess product lying in warehouses and a slowdown in the home building market. The manager said that all laid off employees will be brought back by early July. The mill manufactures LP Smartside exterior siding, in addition to trim and fascia.
The Mayor of Pontiac recently proposed a tentative $54.05 million budget that would involve the layoff of 29 jobs in the Pontiac Police Department if major concessions are not given by police and fire unions. The total number of government layoffs would be 43, which might include five jobs in public works, five in 50th District Court and a smaller number in other departments.
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The Chicago wallboard manufacturer USG recently announced the layoffs of 500 salaried employees, or 10 percent of its salaried workforce. The layoffs are being conducted to compensate for a slowed housing market, which has resulted in a decreased demand for wallboard. USG intends to seek voluntary exits from its employees before the layoffs take effect. USG employs 1,200 salaried workers in the Chicago region and 5,000 salaried workers worldwide. USG expects pay out between $8 and $12 million in cash to workers who were offered defined-benefit pensions.
Kimball Electronics in Gaylord, Michigan recently announced it would lay off 216 workers from its factory in the city's industrial park. The high-tech factory manufactures electronic components for a variety of automotive, medical and industrial purposes. The layoffs will occur in response to the shift of two large contracts to Asia. A company spokesman said the layoffs will occur in three waves which will commence in August and will expire by the year's end. The announcement has added to the groundswell of unemployment in Otsego County which has a current unemployment rate of 10.2 percent. All 216 affected workers are able to apply for transfers to other Kimball locations in Jasper, Indiana, Tampa, Florida or a factory in Mexico.
The Board of Education in Cincinnati recently approved the layoffs of 100 employees as it continues to shake off expenses and financial hardship. 79 instructors' assistants were laid off along with 13 clerical support specialists and eight school-community liaisons. CPS administrators said the layoffs will save about $2.4 million in next year's budget. The CPS needs to trim a total of $39 million to balance spending and revenue next year. 301 layoffs have been executed since March, including 99 teachers. District officials say more layoffs are likely to come.
The Flint Board of Education recently announced the layoffs of 45 paraprofessionals and five teachers from the Flint School District. The layoffs are a result of reductions in state and federal funds that are used to pay the paraprofessionals. Of the five teachers that will be laid off, four will be bilingual/English as a Second Language program teachers and one will be a first grade teacher. The layoffs will reduce the district's bilingual paraprofessionals to fewer than a dozen but will not eliminate the bilingual program.
The Blade, Toledo's daily newspaper, recently disseminated layoff notices to 27 employees. The layoffs were made in the paper's circulation, advertising, information technology, finance, production and news departments. The assistant managing editor said the layoff decisions were based on employee seniority.
Michigan's New Berlin School District recently announced the layoffs of the equivalent of 4.92 teacher positions. The layoffs would affect the areas of art, business and health education which are said to be overstaffed and have decreasing enrollment. The School Board president said they would likely layoff positions in special education and library services in the near future.
OMNI Softgoods Futon Furniture, Inc. recently announced that it will lay off 33 workers by July at its facilities located in Spring Green, Wisconsin. No other information was available as of yet.
The Indiana-based Pernod Ricard Seagram Distillery in Lawrenceburg recently mailed a letter to 409 of its employees, warning of a possible mass layoff slated for June. The letter stated that two employees will be laid off at the distiller's Rushville grain elevator; the fate of the remaining employees remains unclear. The mass layoff may or may not happen or be long term for some employees because the sale of the distillery is still pending with CL Financial Group. Seagram mailed the letter to its entire workforce, who, according to Lawrenceburg's mayor, would be encouraged to apply for work with the new owners in the event of a mass layoff.
The Bangor school district in Michigan recently experienced nine layoffs in reaction to a series of budget cuts due to a $774,793 deficit this school year. Three elementary school teachers, one middle school teacher, and one high school teacher will be laid off alongside a part-time middle school teacher. A guidance counselor was laid off alongside two custodians as well. These layoffs accounted for about half of the cuts adopted for the 2007-08 school year, which begins in July.
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Michigan's Northwest Community Schools plans to lay off 15 to 19 people as the school system strives to make up more than $1 million for next school year. 35 school staff members received notices this week that they could be laid off this June. The school board vice-president said that extra notices were sent to prepare those employees in case the district needs to lay off more jobs than are anticipated. Northwest has lost 145 enrolled students in the past year.
The Detroit Federation of Teachers says that Detroit Public Schools plan to lay off 555 teachers by the end of the school year. The layoffs are attributed to a shrinking student body within the school district. The union president is reminding teachers that the district traditionally sends out an excess of layoff notices and many jobs may yet be saved. The union said that the number of retirees could offset the number of laid of teachers. About 300-400 teachers are expected to retire at the end of the school year.
Wisconsin's Eau Claire School District will soon lay off about 20 people. The District Personnel Director said that of the 20 employees, some may have their full-time employment reduced to part time. In the end, about 13 full-time employees will be laid off. The layoffs will impact the Tech Ed, Business Ed, Foreign Language, music, marketing and math departments.
Transportation equipment manufacturer Stoughton Trailers L.L.C. warns that it may temporarily lay off more than 1,100 employees later this year. The layoffs are anticipated in reaction to a slower business cycle and could occur at two plants in Stoughton, Wisconsin in addition to plants in Evansville and Brodhead. The company said the layoff could affect up to 677 workers in Stoughton, 134 in Evansville and 315 in Brodhead. The workers are not represented by a union.
The LakeVille School District in Michigan will likely experience concessions and layoffs to balance next year's budget. The LakeVille Board of Education voted unanimously to cut $1.5 million from the budget which could possibly lay off up to 28 teachers. The school district currently employs 98 teachers for 1,958 students.
The Cincinnati Public School Board voted to lay off 99 teachers due to reduced student enrollment. The board is now reviewing dozens of central office and administrative employees in an attempt to assess future layoffs. The school board has already voted to close four schools. The cuts have saved an estimated $9 million so far.
The Airport Community Schools Board of Education in Carleton, Michigan has recently announced the layoffs of seven certified staff members. The layoffs are said to be due, in part, to a shift in population. The superintendent says that the enrollment of high school students has increased while middle and elementary students have decreased. The superintendent claims that the specific layoffs are unknown at this time.
Cleveland-based Eaton Corp. has had laid off 113 workers from its plant in Auburn, Indiana since October. The layoffs are in response to lower sales in the North American heavy-duty truck market. Eaton most recently laid off 18 workers, but expects to keep its hourly work force at 105. Eaton is one of several Indiana auto-parts makers that have laid off employees in recent months.
Layoff notices are being distributed to all 14 teachers in the Republic-Michigamme School District in Michigan. According to the Superintendent, the action will give the School Board some budgetary flexibility while they clarify their position in regards to state funding. The Superintendent insists that the District is not shutting down. The District is also dealing with expiring contracts for summer teachers and support staff.
29 Michigan State Police troopers facing layoffs received a total of $400,000 to cover their salaries through June 2. The layoffs are the result of a $14 million deficit in the State Police budget and the city claims the action is necessary. The budget deficit also led to the decision to terminate a 50-recruit trooper school this year, and to close the Hart and Calumet State Police posts next fall.
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Whirlpool plans to lay off 25 hourly workers from its Evansville plant this month, following a reduced demand for its top-mounted refrigerators. The layoffs will be conducted in accordance with Whirlpool's voluntary layoff program which allows hourly workers to volunteer for a layoff period of eight weeks. After the eight weeks expire, volunteers will have the option to return to their previous job or to take another six week layoff period. Workers who opt for voluntary layoff receive no company pay, but can collect unemployment benefits. Layoff volunteers can continue this program for up to 26 weeks. The layoffs come in the wake of numerous Whirlpool layoffs around the state of Indiana over the past two years.
Dura Convertible Systems in Adrian, Michigan will close down operations in May. The 250 employees the company is laying off will receive services from the city to help them find new jobs. City officials say not only will the affected employees lose their jobs, but the city will also lose tax dollars. The Lenawee County Chamber for Economic Development hopes the operation can attract other buyers who might keep the facility open and running.
Littlefuse Inc. of Des Plaines and Elk Grove Village, Illinois will transition production and distribution to other locations in Mexico. The transition will take place in phases through 2009. Approximately 300 employees will lose their jobs at the electronic manufacturing company.
Handcrafted basket manufacturer, Longaberger Company, announced a mass layoff impacting 25% of its employees. A total of 710 employees received layoff notices. Of those, 471 will likely be called back to work in June. The Newark, Ohio company says the rehiring does depend on future demand and the success of a company turnaround.
A temporary layoff at two Minnesota Diversified Industries facilities is expected to last at least until September. Layoff notices were given to 147 Grand Rapids and over 100 Hibbing employees in Michigan. The layoff comes as demand for plastic mail totes and bags decrease from the U.S. Postal Service. The workers would be called back in September if the Postal Service places more orders for October 1.
There are 52 workers at the Keystone Powdered Metal Company plant who will be part of a mass layoff beginning April 20. The Columbus Ohio plant is permanently closing its plant that manufactures gears, bearings and sprockets. Keystone's main customers, automakers, decreased demand for products. This is just one of many companies affected of the changes going on in the U.S. auto industry.
The 3M lint roller plant in Amery, Wisconsin is cutting 55 jobs, which is about half of the current staff. 3M is moving the lint roller processing to Mexico where the company already has another lint roller processing plant. In the meantime, the same employees slated for layoff have to work mandatory overtime shifts so the company can stockpile the rollers before the machinery if moved to the Mexico plant.
The United Auto Workers Local No. 2052 was notified in January that the Collins-Aikman Products Company in Morristown, Indiana would close by the end of March. The factory produces cockpit modules, acoustic systems, instrument panels and trim. Company officials did not provide a detailed layoff schedule or negotiated severance packages for the 240 factory employees.
The Cook County Bureau of Health Services sent layoff notices to 230 doctors and nurses before a board meeting was scheduled to discuss budgeting and work force cuts. While the notices could be rescinded depending on the final approved budget, it is not known how many positions will remain or be eliminated under different budget scenarios. The staff receiving the notices were already aware of the possibility that they would lose their jobs.
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The Foremost Farms juice plant in Fitchburg, Wisconsin and distribution center in Windsor, Wisconsin will close by the end of April. Approximately 77 employees will lose their jobs. The company will give out severance packages and provide employment assistance. The closing comes as the demand for juice declines due to the bad weather and disease that damaged Florida and California orange crops this last season.
Harley-Davidson Incorporated announced a mass layoff of 440 employees in Wisconsin. Around 240 employees were laid off at the production plant in Tomahawk and 200 others at other plants around southeast Wisconsin. The mass layoff was due to an ongoing strike at the company's largest production plant in York, Pennsylvania.
The slowdown in the housing market is impacting operations at Wolseley plc. The UK-based company is the world's largest distributor of plumbing and heating products to contractors and also a large supplier of building materials. The company announced plans to cut 500 jobs from its plumbing company with plants in various Indiana cities including Fort Wayne and Indianapolis.
Ohio-base metal enclosure manufacturer Armor Metal Group will lay off 112 employees from its Madison, Indiana plant in March. Armor notified the state Department of Workforce Development about the expected layoff. The demand has decreased for containers used to ship supplies by the military for the Iraq and Afghanistan war. This layoff would be Madison's second largest job loss in the last year.
Chrysler Group plans to terminate 250 employees next week. The job cuts will take place at its Detroit plant, which build engines for the Dodge Durango and Jeep Grand Cherokee. The automaker is expected to announce more mass layoffs in mid-February when it announces additional cost cutting plans to eliminate shifts and close plants.
Around 900 employee positions will be terminated by the middle of this year at LaSalle Bank branches in three U.S. cities. Chicago branches will receive 500 layoff notices. The other 400 job cuts will take place at branches in New York and Michigan. Parent company ABN Amro Bank N.V. says the work force reduction should make the company more competitive in the future.
A mass layoff at the United Technologies Electronic Controls Huntington plant resulted in 112 job cuts. The Indiana electronic components plant stated the layoff is only temporary until sales production increases.
Two library branch closings will impact more than 100 employees in Bay County, Michigan. The closings make it possible to keep other branches open in the Bay City area. Exactly 25 full-time employees, 45 part-time employees and 36 high school pages will lose their jobs in this mass layoff event.
Wisconsin-based consumer products manufacturer Kimberly-Clark announced plans this month for a mass layoff including 350 jobs in human resources, information and technology as well as sourcing and supply management. The job cuts will take place at the offices in Neenah and Fox Valley after January 1. The company plans to outsource the functions of the terminated jobs.
Ohio Department of Transportation (ODOT) officials were surprised to hear that the construction company working on the Veterans Glass City Skyway (I-280 bridge) announced a mass layoff of 86 workers. ODOT will meet with Fru-Con Construction Corporation to make sure safety and completion will not be affected by the layoff of 33 carpenters and 53 other workers. Also noteworthy: Fru-Con Construction paid $11.25 million in personal injury claims to the families of three of the four ironworkers killed when a truss crane used in building the bridge collapsed in 2004.
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In an effort to remain in business, Alma Products Company is beginning a mass layoff of 285 employees. The layoffs include both manufacturing and office positions at the Alma, Michigan auto parts supplier. Alma will primarily manufacture torque converters for automatic transmissions and discontinue most of its other product lines.
The production cuts at Ford impact yet another part manufacturer. Visteon Corporation located in Van Buren Township, Michigan will lay off 900 salaried employees. Visteon anticipates the 13% reduction of the white-collar employees in Europe and the United States will save the company $75 million per year. Connersville, Indiana employees breathed a sigh of relief when Visteon officials assured them they would not be included in the layoff plan. Visteon terminated 174 hourly workers at the Connersville plant during September and October so the remaining 900 hourly and 200 salaried employees were justifiably concerned when they heard about the layoff announcement on Tuesday.
The largest newspaper in Ohio offered a voluntary buyout package to all 372 of its newsroom employees two months ago. A total of 64 of Cleveland Plain Dealer's employees agreed to the terms of the offer. The 17% staff reduction will reduce expenses but not be terribly obvious to its readers.
The Detroit Public School system sent letters to 430 teachers telling them they may lose their jobs due to declining student enrollment. Not all 430 teachers notified will necessarily lose their job. However, the Detroit school district is required by the teacher's union to give 60 days' notice before they lay off any teacher. The Detroit Federation of Teachers already agreed to freeze wages this year to help offset the budget deficit.
The Chicago Board of Trade, established in 1848, and the Chicago Mercantile Exchange, established in 1898, will become one entity in 2007 that will remain in Chicago. The announcement made on Tuesday officially ends the long-standing rivalry between the two financial exchanges. The merger will result in an undetermined number of layoffs affecting some of the 2,174 employees at both exchanges. It is unknown at this time how many of the 50,000 trading firm employees will be laid off as a result of the merger.
As Ford Motor Company moves ahead with a plan to cut 30,000 hourly jobs by 2008, it will begin offering early retirement and buyout packages to all its hourly employees. All 75,000 hourly employees will have the opportunity to accept one of these packages before a November 27 deadline. Some packages include a lump-sum payment of up to $140,000 and tuition reimbursement. Salaried employees will receive additional opportunities to accept buyouts. Ford hopes to also cut 14,000 salaried employees by December 2008.
The auto industry production decline forced Timken Co. to announce a cut of 700 jobs due to decreased sales. The Canton, Ohio-based steel and ball bearings manufacturer will effectively decrease staffing by 5%. It is not known which locations will be affected by the layoffs.
Superintendent Eugene Sanders held a news conference to announce plans to slash $3.7 million in the Cleveland Municipal School District budget by cutting staff. The reductions, involving non-union staff in the administrative office, are part an overall plan to make Cleveland one of the premier school districts nationwide.
Ford Motor Co., already in the process of massive layoffs, may be accelerating those plans. Many financial analysts have suggested that Ford's plan to eliminate 30,000 jobs by 2012 must be accelerated. Ford plans to announce a revised plan later in September, the company has thus far refused to comment on speculation that the projected closings will actually take place by 2008.
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The Ford Motor Co. cutbacks claim more victims as the Clarksville Robert Bosch Corp. eliminates 60 positions. The plant, which currently employs about 420 people, makes automotive braking systems, and Ford is one of the company's key customers. Cleveland-based Eaton Corp., which manufactures controls for auto transmissions and windows, announced that 53 workers-about 20% of the employees at the company's Three Rivers plant-would be laid off as of September 15.
The Ford Motor Co. production cuts continue to send ripples through the manufacturing industry. In addition to cuts already announced at Ford and BorgWarner Automotive, Navistar International, which makes diesel engines for Ford's F-Series Super Duty pick-up trucks, announced the elimination of 380 positions. Meanwhile, Dana Corporation, a company that manufactures frames for Ford and Lincoln SUV's, announced that it would lay off 125 employees in its Elizabethtown plant. Dana is also laying off about 100 workers in Ontario, Canada, and earlier eliminated 60 positions at its Mitchell, Indiana plant.
DaimlerChrysler AG laid off 103 employees at its Kokomo, Indiana plants in August. The company plans to scale back production of large vehicles like the Ram, Durango, and Dakota due to rising gas prices and the resulting decreased demand for large vehicles.
The recently announced cuts at Ford Motor Co. are already having a wider impact. The Muncie, Indiana Borgwarner Automotive plant advised 840 employees of a temporary shutdown just a week after Ford's latest announcement. Although the company's long-term plans remain unclear, the impact of the Ford cutbacks on suppliers and manufacturers across the country is sure to be significant. Meanwhile, union leaders in Norfolk, Virginia are warning that the Norfolk Assembly Plant could see layoffs much sooner than anticipated.
Ford Motor Co. announced in January that it would eliminate 30,000 jobs and close 14 factories in North America by 2012. New information indicates that Ford may be about to expand those plans, extending layoff offers to all of its factory workers in North America. If that comes to pass, it will mirror General Motors Corp's offer to its employees earlier this year. That offering resulting in the elimination of about 34,000 positions.
Titan Tire recently laid off 71 employees at its Freeport, Illinois plant, but union leaders are fighting to restore some of those jobs, arguing that many of the laid-off employees could have been reassigned.
Crownline Boats, Inc. announced in mid-August that about 90 of the company's southern Illinois employees will be laid off. The cuts account for nearly 20% of Crownline's current workforce. The company hopes that the layoffs will be temporary.
Cerro Flow Products, Inc. has eliminated 54 jobs at its Sauget, Illinois plant. The company cited increased copper prices, reduced demand for new housing, and low-priced imports as the cause of the layoffs.
Bay Area Medical Center in Marinette, Wisconsin is laying off 10% of its more than 600 employees. The center attributes the layoffs to a decline in patient volume.
Two Johnson County, Indiana Mitsubishi Climate Control plants will cut their workforces as of September 1. About 60 job cuts are expected between the company's Franklin and Greenville plants.
Dana Corporation in Mitchell, Indiana plans to lay off about 30 people in August and another 30 in September, 2006. The company plans to shut down the plant altogether by July, 2007, eliminating the remaining 240 or so jobs at the Mitchell location.
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Guide Corp. in Anderson, Indiana has announced plans to lay off at least 180 employees by the end of the year. The company, once a subsidiary of General Motors, will lose its lamp contract for the Chevrolet Trailblazer, GMC Envoy, and Buick Ranier SUVs.
Papermaker Glatfelter will close its Wisconsin plant as of June 30, impacting 192 employees. Wisconsin Governor Jim Doyle has announced funding for additional re-employment services for those displaced employees.
The Montgomery County Job Center is warning that the Dayton, Ohio area may be hit hard with a cluster of layoffs that could wipe out as many as 9,000 jobs. Plans to close seven plants and cut some shifts at others could mean a loss of more than 2,600 jobs by the end of June, with a thousand or more additional cuts by the end of the year.
Whirlpool Corp. announced in early May that it will lay off approximately 4,500 employees. These projected layoffs include several closures of Maytag plants, including the Herrin, Illinois and Newton, Iowa plants, each employing about 100 workers. In addition, Whirlpool plans to close the 700-employee Maytag plant in Searcy, Arkansas, and shut down administrative offices in the United States, Canada and Mexico.
Northern Indiana has been hit hard this year, with mass layoffs at Fort Wayne Foundry (221 jobs), Nishikawa Standard Co. in New Haven (411 jobs), Amcast Industrial Corp. in Fremont (272 jobs), Hayes Lemmerz International in Huntington (274 jobs), and Waterfield Mortgage Co. / Waterfield Financial Corp. / Quantum Settlement Services in Fort Wayne (650 jobs).