Factory fallout: Manufacturing plant closures and layoffs from Volvo, General Motors, J.M. Smucker, and more
With political winds changing and global markets tightening, manufacturers are making tough decisions—and workers are feeling the impact. In this roundup, we chronicle the closures and cutbacks reverberating throughout the manufacturing sector. As uncertainty becomes the new normal, we examine how businesses and workers alike are navigating a rapidly changing industrial landscape.
Volvo Cars has announced a global reduction of approximately 3,000 positions, including around 1,200 employee-held roles and 1,000 consultant positions in Sweden, as part of an SEK 18 billion cost and cash action plan. These layoffs will primarily affect office-based roles and represent about 15 percent of Volvo’s global office-based workforce. The company has begun negotiations with labor unions and notified Swedish labor market authorities. In a recent quote, Håkan Samuelsson, Volvo Cars President and CEO, said, “The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars.”
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According to the Montgomery Advertiser, Evonik, a company that produces specialty chemicals used in industrial settings, livestock farming, and fuel production, has laid off 143 employees at its plant in Theodore, Alabama. The layoffs became effective on April 16, significantly impacting the local workforce. Although the federal WARN Act requires a 60-day advance notice for mass layoffs, the company filed its WARN notice on May 7, three weeks after the layoffs had already occurred. The delayed notice has prompted a legal investigation into the compliance of the layoffs with federal labor laws.
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According to WOWK 13 News, GreenPower Motor Company announced layoffs and a pause in manufacturing at its facility in South Charleston due to increased operational costs linked to new trade tariffs. The company, which produces electric school buses, stated that the tariffs have severely impacted the entire school bus manufacturing sector. In a recent quote, GreenPower said, “The new tariffs leave no pathway for a school bus OEM to build vehicles in the United States and it completely halts GreenPower’s efforts to on-shore and friend-shore the supply chain, especially non-Chinese battery cells and components.” The company noted it had explored various alternatives before deciding on the layoffs but found no viable way to absorb the added economic burden.
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The J.M. Smucker Co. announced plans to close its manufacturing facility in Indianapolis, Indiana, which produces Hostess brand products, by early 2026. Operations will be consolidated into other existing facilities, though the number of affected employees was not disclosed. In a recent quote, Judd Freitag, Senior Vice President and General Manager, Pet and Sweet Baked Snacks, said, "This decision continues the ongoing work to ensure our manufacturing network is optimized to mitigate costs and reduce complexity in support of the execution of our Sweet Baked Snacks strategy, which is focused on stabilizing the Hostess business and positioning it for long-term growth." The company has committed to supporting affected employees through the transition.
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According to the Rochester Business Journal, General Motors has laid off 100 employees at its Lexington Avenue facility in Rochester. The layoffs follow the transfer of a manufacturing line to Mexico and slowing EV sales, with approximately 72 employees originally furloughed in March and April now facing indefinite layoffs. In a recent quote, Dan Maloney, president of UAW Local 1097, said, “I’m not understanding why the company saw fit to make that move to Mexico. Apparently they have more intel than Joe Six Pack on the production floor.” While some affected employees have accepted reassignment to GM’s Lockport plant, relocation has not been feasible for all.
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