Factory Fallout: Manufacturing layoffs from Jaguar, Volkswagen and more
Market challenges, cost pressures and missed expectations contributed to closures and cutbacks this month.
Jaguar Land Rover announced on Sept. 7 that it will cut 4,000 jobs over the next two years, mostly affecting its UK headquarters, according to the BBC. The company said the cuts are intended to save £1.7 billion ($2.3 billion) as it faces a deteriorating market in China, U.S. tariffs and lower-than-expected adoption of electric vehicles. The cuts will initially be pursued through voluntary redundancies, with compulsory redundancies possible if necessary.
Volkswagen Group announced on Sept. 3 a plan to cut about 50,000 positions and end auto production at four German plants, according to the Associated Press. The plants in Emden, Zwickau, Hanover and Neckarsulm face the end of vehicle production because “a competitive future production allocation … cannot be secured” for them, the company said. Volkswagen has 500,000 vehicles of excess production capacity in Europe. Alternative uses for the four sites in Germany will be explored.
CannaCraft's manufacturing arm CraftForce Services and NorCal Cannabis Co., both cannabis manufacturers based in Santa Rosa, California, announced layoffs affecting nearly 60 and about 49 employees, respectively, according to MJBizDaily. The CraftForce layoffs are scheduled for Sept. 20 while NorCal's are scheduled for Sept. 13. The cuts are attributed to continued weakness in California's adult-use cannabis market. CannaCraft's CEO said the company's operation was sized for a level of industry growth that did not materialize.
No Meat Factory, a manufacturer of plant-based food products, announced on July 22 that 123 employees will be laid off due to the closure of the company’s Stanwood, Wa. facility. The separations are expected to take effect Sept. 16. The more than 200,000-square-foot facility, which includes a 55,000-square-foot freezer, was the company’s only U.S. site. Operations will continue at No Meat Factory’s remaining plant in Coldstream, British Columbia in Canada.
Samsung Electronics America will lay off or offer relocation to 739 employees of its shuttering Englewood Cliffs, N.J. headquarters. The new headquarters will be located in Plano, Texas, according to the Houston Chronicle. Samsung Electronics America produces consumer electronics, an industry which has faced challenges in the last year due in part to the skyrocketing cost of memory chips.
